Global money pours into US stocks, hitting record $942b in net purchases over 12 months

Foreign investors' net purchases of US stocks have reached an all-time high.

According to the Financial Times, foreign investors' net purchases of US stocks and investment fund shares over the 12 months through July totaled $942 billion — the largest such figure on record.

The figure is the highest for any 12-month period since the US Treasury began tracking the data in 1985.

Particularly notable was the second quarter of this year, when foreign net purchases of US stocks and investment funds reached $426 billion, a 62% jump from the same period last year.

The previous quarterly record was $299 billion, set in 2022.

The record inflows coincided with a broad rally in US equity markets.

The S&P 500 rose about 20% over the 12 months through July. The index briefly tumbled in the second quarter amid the Iran war before rebounding to close the quarter up 14.9% — its strongest quarterly gain since the second quarter of 2020.

Analysts also pointed to buying by investors in countries with strong domestic markets, including South Korea and Taiwan.

Investors who had seen their Korean equity holdings grow as a share of their portfolios — driven by rising share prices at Samsung Electronics and SK hynix — shifted funds into overseas markets, including the United States, to reduce concentration risk.

"It is quite unusual to see more than $200 billion flow out of Korea into foreign equities," said Brad Setser, a senior fellow at the Council on Foreign Relations.