FOREIGN INVESTORS PIVOT TO US STOCKS FROM TREASURIES IN MAJOR CAPITAL SHIFT

A significant shift in global capital flows shows foreign investors now favor U.S. equities over government debt, a reversal of a multi-decade trend. In the year to June, inflows to stocks reached 2.8% of GDP, surpassing the 2.0% directed to Treasuries. This change is driven by the allure of AI-powered profit growth in the U.S. corporate sector and mounting concerns over the risk profile of sovereign debt.