Foreign Investors Own Record US Stock Slice — Wall Street Split on What’s Next
Foreigners have become the ultimate “buy America” champions, owning a record share of US equities. From just 2% in the 1950s to 8% in 2000, overseas capital now controls 18% of the $93T US stock market. Experts are split on whether this $16.5T foreign love affair continues — or if a sudden breakup could leave American markets vulnerable.
- Goldman Sachs expects $300B in foreign inflows this year — citing America’s unmatched liquidity, earnings growth projections, and boosted foreign affordability as the USD weakens.
- In contrast, Apollo warns that Trump’s tariff push to eliminate the trade deficit could backfire — arguing that fewer goods sold to America means less USD reinvested in its markets.
Capital irony: Meanwhile, Bank of America surveyed 190 global fund managers, collectively controlling $523B — revealing that 54% expect international stocks to outperform over the next five years, vs. just 23% backing US equities. These pros are at their most underweight dollar position in 20 years, rotating offshore as Europe’s STOXX 600 outperforms the S&P 500 YTD. But with foreign ownership hitting record highs, markets have discovered that the grass is always greener abroad.
