Foreign Inflows Into US Stocks Hit Record $942 Billion Over 12-Month Period

Foreign capital flows into US equities reached historic highs as overseas investors reallocated capital away from fixed income. Overseas investors purchased a record $942 billion in US stocks and investment fund shares over the 12 months through July, the highest rolling total since 1985. The surge was led by a record $426 billion in second-quarter net equity purchases, up 62% year-over-year, which coincided with a 14.9% gain for the S&P 500. Meanwhile, foreign purchases of US debt fell from $314 billion to $188 billion in the second quarter.