The share of US equities held by foreigners has hit a new all-time high of 18%. That’s more than double the level from 2000, and nearly 9x higher than in 1980.
🟡 Foreign ownership has steadily grown since the 1980s deregulation of capital markets
🟡 Major inflection points came after the 2008 crisis and during the post-COVID liquidity boom
🟡 Foreign investors are mainly concentrated in large-cap tech, financials, and ETFs
🟡 This also reflects the US dollar's continued dominance in global capital flows
The more global capital chases US stocks, the more dollar strength and US equity valuations become intertwined.
Global money wants US exposure—but that also means higher fragility if sentiment turns.