Foreign investors are rotating heavily into US equities, with $121B in net purchases in May and record outflows from Asian markets signaling a broad capital flight to US markets.
Macro & Markets ·
Foreign private investors purchased $121 billion in US stocks during May, marking the second-largest monthly inflow on record and the second consecutive month of increases, according to capital flow data. The surge reflects a broader rotation away from Asian markets, where foreign investors dumped record or near-record amounts from South Korea and Taiwan in recent months, signaling sustained capital preference for US equities year-to-date at approximately $270 billion in net purchases.