Global Investors Flood US Stocks With $290B Buying Spree

This article first appeared on GuruFocus.

Foreign investors have ramped up their bets on US equities to historic levels, even as tariffs and political rhetoric have weighed on America’s global image. Federal Reserve data showed that overseas buyers added $290.7 billion in the second quarter, pushing foreign allocations in US assets to nearly 32% the highest share since 1968. Bank of America’s Elyas Galou noted that holdings are on pace to climb by $2.8 trillion this year, lifting total exposure to roughly $18 trillion, or close to 30% of the entire market. Despite boycotts of US products and weaker inbound travel, global investors appear unwilling to step away from Wall Street’s equity engine.

The interest has been concentrated in large-cap technology, particularly those linked to artificial intelligence. Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG) have become focal points, with CFRA strategist Sam Stovall pointing out that the tech sector alone has set 26 new all-time highs this year. The inflows have arrived even as the S&P 500 trails benchmarks in Canada, Mexico, Brazil, Japan, and China. The MSCI All-Country World Index excluding the US has advanced 22% this year against a 13% gain for the S&P, yet global buyers remain drawn to the scale and concentration of American tech. The Fed’s first rate cut in a year has added momentum since April, helping extend the rally across US markets.

Analysts suggest the flows reflect pragmatic allocation choices rather than alignment with Washington’s policies. Ned Davis Research strategist Rob Anderson highlighted that Canadian investors continue to accumulate US stocks while avoiding American goods. Brian Jacobsen at Annex Wealth Management echoed that view, noting that many prefer equities over Treasuries, seeing companies as distinct from the government. With fund flows showing momentum carrying into the third quarter, US names from Tesla (TSLA) to Nvidia remain central to global portfolios, even if relative performance against world indices has lagged.