The Kobeissi Letter: Global investors have continued to favour US equities, with American stock funds attracting an unprecedented $2.1 trillion in inflows since 2020, highlighting Wall Street’s enduring appeal as an investment destination.
The flow of money has accelerated in recent years, with investors allocating $1.5 trillion to US equity funds since the beginning of 2024 alone, according to market commentary shared by The Kobeissi Letter.
The scale of these investments has significantly outpaced flows into other major regions. US equity funds have attracted 4.5 times the inflows recorded by emerging market Asia equity funds over the same period, while European equity funds have witnessed substantial withdrawals. The trend points to a pronounced preference for US stocks among global investors, even as equity markets across regions compete for capital.
Asia, Europe lag behind
Emerging market Asia equity funds attracted $470 billion in inflows, considerably lower than the amount received by US-focused funds. The difference underlined the extent to which global investors have favoured American equities over emerging market Asian stocks.
European equity funds, meanwhile, recorded outflows worth $246 billion, with investors withdrawing capital rather than adding to their allocations.
“At the same time, European equity funds have posted -$426 billion in outflows. Meanwhile, global equity funds attracted +$89 billion last week, bringing 4-week inflows to a record +$266 billion,” it said.
The divergence in fund flows illustrated how investment preferences have remained concentrated on the US market. While emerging market Asia continued to attract fresh money, its inflows were substantially smaller than those into American equities. Europe, in contrast, faced net withdrawals over the period highlighted.
The trend also suggested that the preference for US stocks was not limited to a short-term burst of buying. The cumulative inflows since 2020, alongside the significant allocations since 2024, pointed to sustained investor interest in American equity funds.
Global equity fund inflows hit record as US leads weekly investments
Furthermore, it also highlighted that the latest fund-flow figures also indicated that investors continued to add money to equities globally. Global equity funds attracted $89 billion in the latest week, taking their four-week inflows to a record $266 billion, according to The Kobeissi Letter.
US equity funds accounted for a significant share of the latest weekly investments, attracting $32 billion. This made American funds the biggest contributor to global equity fund inflows during the week and reinforced the country’s position as the leading destination for equity capital.
The Kobeissi Letter summed up the trend by stating, “Global equity funds attracted +$89 billion last week, bringing 4-week inflows to a record +$266 billion. US equity funds drove last week’s inflows, attracting +$32 billion.”
Taken together, the figures highlighted the scale of the concentration of global equity investments in the US. With American funds leading both long-term and recent weekly inflows, Wall Street remained a major beneficiary of global investors’ appetite for equities. The Kobeissi Letter captured the trend in a simple conclusion: everyone wants US stocks.
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