"The second quarter of 2025 saw a record level of foreign investment in the US markets, at $8.24 billion, according to Trading Economics . There are a number of reasons that foreign investors have cited their preference for US stocks, such as: For the past few years, the Vanguard S&P 500 ETF benchmark has outperformed all other global and emerging market ETFs, reinforcing the perception of US primary market strength and resilience supremacy."
"The S&P 500's "Magnificent 7" stocks: Apple, Amazon, Alphabet (Google), Microsoft, Meta Platforms (Facebook), Nvidia, and Tesla - are unrivalled in each of their respective sectors, marking US preeminence in AI development and technology. The Netherlands' ASML Holding NV, the foremost supplier of Extreme Ultraviolet lithography machines used for semiconductor manufacturing, is perhaps Europe's sole qualifier in that elite echelon. The top 100 US companies are essentially multinationals that either dominate or have a decidedly large market share in most other nations' economies."
Concerns exist about a potential bubble as the S&P 500 bull run enters its 36th month and some US company valuations reach hundreds of billions or trillions. Foreign investment in US markets reached a record $8.24 billion in the second quarter of 2025, according to Trading Economics. The Vanguard S&P 500 ETF has outperformed global and emerging market ETFs, reinforcing perceptions of US market strength. The S&P 500's "Magnificent 7" dominate key tech sectors and AI development. ASML is a notable European exception in advanced semiconductor equipment. The top 100 US firms operate as global multinationals with large market shares abroad, and foreign investors remain heavily invested despite diversification advice and mixed investor sentiment.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]