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.
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.