Finance1 min read

Wall Street Boom! US stocks attract massive $2.1 trillion inflows since 2020; Asia, Europe lag behind - Kobeissi Letter

By · Published by Everything Blog

In short

Investors have directed $1.5 trillion into domestic equity funds since the start of 2024 alone, accelerating the multi-year trend. This surge contrasts directly with international counterparts, as emerging Asian funds captured only a fraction of this capital while European funds suffered major net withdrawals. Over the latest week, global funds absorbed $89 billion, powered primarily by $32 billion entering American markets. These recent weekly numbers pushed the rolling four-week total for global equity inflows to a record $266 billion.

Key points

  • American equity funds absorbed an unprecedented $1.5 trillion in new capital since the be…: American equity funds absorbed an unprecedented $1.5 trillion in new capital since the beginning of 2024.
  • Four-week global equity inflows reached a record high of $266 billion, predominantly driv…: Four-week global equity inflows reached a record high of $266 billion, predominantly driven by U.S. demand.
  • Capital allocation demonstrates a severe regional imbalance as European and Asian markets…: Capital allocation demonstrates a severe regional imbalance as European and Asian markets struggle to match American momentum.

Sources checked by our analysis pipeline: 1

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…

Finance

More in Finance