The largest overseas buyers of U.S. stocks are starting to “pull back”

Foreign investors are an important force in the US stock market, holding nearly one-third of the market share. Europe (including the United Kingdom) accounts for almost half of this market share, which amounts to a staggering 25 trillion US dollars. However, their enthusiasm appears to be waning. Although it is difficult to obtain the latest data on European portfolio flows, we can infer their sentiment by observing US stock ETFs registered in Europe, on the assumption that: a) these ETFs are primarily used by European investors, and b) they reflect broader non-retail capital flows. Show more