"Sell off America"? Investors abandon U.S. Treasuries but still embrace U.S. stocks
Investors' attitudes towards U.S. assets have diverged; despite a cautious stance on U.S. Treasuries, they are still actively investing in U.S. stocks. According to Bank of America statistics, foreign investors have purchased approximately $350 billion in U.S. stocks and $200 billion in U.S. bonds since the 2020s. It is expected that by 2025, foreign capital inflow into the U.S. stock market will reach $138 billion, while the inflow into U.S. bonds will remain flat
The end of the "American exceptionalism" is a hot topic in the market, and investors have differing views on whether the trend of overweighting U.S. assets has come to an end.
According to Bank of America statistics:
As shown in Figure 1, since the 2020s, foreign investors have purchased approximately $350 billion in U.S. stocks and $200 billion in U.S. bonds (including government bonds and corporate bonds);
As shown in Figure 2, in 2025, foreign capital inflows into the U.S. stock market remain strong (annualized at $138 billion, the second-largest inflow year on record);
As shown in Figure 3, funds flowing into U.S. government bonds/corporate bonds have decreased from $100 billion to flat.
So far, foreign investors have become cautious about U.S. bonds but remain optimistic about U.S. stocks.
