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A powerful and unusual wave of global capital is rushing into US markets. Foreign investors are buying US stocks at a record pace, demand for US Treasuries is changing structurally, and domestic flows are increasing as the end of the year approaches.
At the same time, American consumer debt reached its highest level in history. For cryptocurrency and equity investors, the size and direction of these flows indicate a significant change in risk appetite and the global macro situation.
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Foreign investors are driving record purchases of stocks amid historic reorganization in Treasury ownership
Private investors outside the United States bought $646.8 billion of American stocks in the 12 months to the end of September 2025, according to data cited by Yardeni Research.
This is the highest level on record, surpassing the 2021 peak by 66%, with flows doubling since January.
The purchase is not limited to the stocks of the United States alone Purchases by private foreign investors have been US bonds A total of $492.7 billion in the same period. Purchases of non-US 12-month bonds continued to exceed $400 billion for four consecutive years, reflecting continued global demand for dollar-denominated security.
said Kobeissi Analysts Letter “Everybody Wants US Assets.”
The structure of US offshore bondholders is changing in ways not seen in decades:
- China’s share of US foreign bond holders fell to 7.6%, the lowest in 23 years, and has fallen from 20% in 14 years.
- The UK share doubled to 9.4%, close to its highest levels on record.
- Japan remains the largest foreign holder, now accounting for 12.9%, down 26 points over the past 21 years.
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These changes indicate a long-term repositioning of sovereign and private capital, a trend that has direct implications for… Interest rates, liquidity and market volatility.
Domestic investors also take the risk, but registered consumer debt adds complexity
American investors have invested an extraordinary $900 billion in equity funds since November 2024, according to JPMorgan data, with half of that amount, $450 billion, arriving in the last five months alone.
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Fixed income funds added $400 billion, while all other asset classes combined attracted just $100 billion.
Inflows into US stocks outpaced those in all other asset classes combined, reinforcing the bet on leverage. US risk assets.
As institutional and foreign investors increase their exposure, the financial pressures on American households increase. Total credit card debt in the United States rose to $1.233 trillion in the third quarter of 2025, the highest level ever recorded.
This disparity between market optimism and pressures on consumers raises questions about sustainability. Resistance of profitsAnd the timing of potential political transformations.
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JP Morgan expects the S&P 500 to hit 8,000 next year, a view supported by a strong monsoon. These expectations come at a time when markets expect the bank to expect…All gathered“Who participated more than a week ago.
December has historically been the strongest month for US stocks, with the S&P 500 rising 73% of the time since 1928 and generating an average return of +1.28%.
For the cryptocurrency and stock markets, increased capital flows to the US indicate a growing reliance on US assets, or a lack of attractive alternatives abroad.
Investors will wait to see if these flows accelerate in 2026, how the needs of the Treasury will change as the rebalancing of global holdings, and how the record debt of consumers will impact the general economic momentum.
As liquidity accumulates and seasonal factors strengthen, traditional markets and digital assets enter a potentially decisive phase.
