Foreign Investors Defy Sell America Narrative, Boosting U.S. Assets
Despite uncertainties around President Trump's tariffs, foreign investment in U.S. assets remains strong, with significant inflows into stocks and bonds. Treasury International Capital figures show a record $1.55 trillion in net foreign purchases. While U.S. stocks lag globally, foreign capital continues to support American markets.
In the midst of renewed uncertainty surrounding U.S. President Donald Trump's tariff policies, the flow of foreign capital into U.S. markets shows no sign of stopping. Despite potential challenges, foreign investors have increased their purchases of American stocks and bonds, underscoring confidence in the country's financial markets.
Net foreign purchases of U.S. stocks and bonds reached a record $1.55 trillion in 2025, according to Treasury International Capital figures. Significant contributions from private sector investors have helped propel U.S. equities to new heights, even as these assets face competition from international markets.
While U.S. stocks struggled to keep pace with their global counterparts, foreign investment continues to be a crucial driver of the American financial system. The balance of payments deficit ensures that capital from abroad remains essential to sustain the U.S. economy.
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