Global capital

Foreigners poured money into US stocks, yet buying built little of the rise in their pile

In the year to June 2026 foreigners bought $1.79 trillion of US securities and sold a net $104 billion of Korean stocks, yet new buying built only a small part of the rise in their US stock pile.

datasteg desk · AI-assisted

12 min read · 20 Oct 2026

PDF Cite

Key numbers

$1.79tn^{Source 1,Source 2,Source 3,Source 4,Source 5,Source 6}
Foreign net purchases of US securities in the four quarters to Q2 2026, the most in data back to 2006 and 1.4 times the euro area's
20%^{Source 1,Source 7}
of the rise in foreigners' US stock holdings since end-2024 that was new buying; the rest was price changes and other adjustments
50.9%^{Source 8}
of US household-held stocks and funds owned by the richest one per cent of households, Q2 2026

Key findings

Foreigners owned $24.66 trillion of US stocks at the end of June 2026, the most in data back to 2006 and 2.7 times their holdings at end-2019, and at end-March US stocks alone were worth about as much as all the euro-area stocks and bonds foreigners held⁠^{Source 6,Source 7,Source 9}.
In the year to June 2026 they bought $1.79 trillion of US securities, the most in data back to 2006 but only just above the year before and 1.4 times what went into the euro area; net of each side's own buying abroad, the US took in 3.8 times as much⁠^{Source 1,Source 2,Source 3,Source 4,Source 5,Source 6,Source 10,Source 11}.
Stocks were the market of choice, drawing $923 billion, also the most in data back to 2006, while foreign buying of US Treasuries fell to $294 billion from $745 billion in the year to March 2025, though US interest rates were about the same⁠^{Source 1,Source 2,Source 12}.
Yet new money built little of the pile: only 20% of the $6.09 trillion rise in foreigners' US stocks since end-2024 was buying, the rest price changes and other adjustments, and research links investors' favour for US assets to company earnings, deep markets and the AI boom⁠^{Source 1,Source 7,Source 13,Source 14}.
The gains go to whoever owns the assets, among them the richest one per cent of US households, who hold 50.9% of household-held stocks and funds, while foreigners sold a net $104 billion of Korean stocks in the year to June 2026, the most in data back to 2007, even as Korea's chip exporters gained⁠^{Source 8,Source 15,Source 16}.

The question

The question we answered

Where do foreign investors hold the most money, which countries and markets drew the most new foreign money in the year to mid-2026, why, and who has gained and who bears the risks?

What we looked at

We measured where foreign investors' money sits and where new money went over the past year, separated fresh buying from price gains, and weighed the research on why it happened and on who gains and who bears the risks.

A note on the question. Where money already sits and where new money is going are different questions, so we answer both; none of the sources we used ranks every country's inflows, so we measure the US, the euro area and Korea, leaving gold, crypto, direct investment and bank loans aside; and as no common yardstick says which group gains 'most', we show gains and risks group by group.

Where foreign money sits

The question asks two different things: what foreigners already own in a country, a pile built up over years, and what they bought over the past year, the new money. We start with the pile.

Foreigners owned $24.66 trillion of US stocks and fund shares at the end of June 2026, the most in data back to 2006⁠^{Source 7}. That is 2.7 times their holdings at end-2019, and equal to 76% of US GDP, a year's output⁠^{Source 7,Source 17}. At end-March 2026, US stocks alone, at $21.17 trillion, were worth about as much as all the euro-area stocks and bonds foreigners held, $21.12 trillion⁠^{Source 6,Source 7,Source 9}.

Research agrees the US pile is outsize⁠^{Source 13}. In 2024 what foreigners own in the US exceeded what Americans own abroad by a record, at least since the paper's data begin, a fifth of world output; that gap is the US net international investment position⁠^{Source 18}. Foreigners held less than a fifth of all US stocks in March 2025, but a third of US Treasuries, the government's bonds⁠^{Source 19}.

Most of the pile's growth, though, was not new money. Since end-2024 foreigners' US stocks rose $6.09 trillion, but their net purchases, what they bought minus what they sold, came to $1.20 trillion, just 20% of the rise⁠^{Source 1,Source 7}. The other $4.89 trillion came from price changes and other adjustments, which these data do not split; the price part is a valuation effect⁠^{Source 1,Source 7}. The chart below shows the same split since end-2019.

Figure 1

Foreigners' US stock holdings rose $15.37 trillion from end-2019 to mid-2026, but their net buying added only $2.19 trillion; the rest was price changes and other adjustments

Rise in foreign holdings of US stocks since end-2019, and how much foreigners boughtUSD billion, change since end-2019, quarterly, Q4 2019–Q2 2026

How to read this chart. The top line is how much more foreigners' US stocks were worth than at end-2019; the lower line is how much they had bought, net, since then. The gap between them is price changes and other adjustments.

The gap between the lines, $13.18 trillion by mid-2026, is in the table view. It includes price changes, revisions and other statistical adjustments, which the data do not separate.

Stocks include investment fund shares, at market value at the end of each quarter. Net buying is purchases minus sales, added up from Q1 2020.

Since end-2024 alone, buying was a fifth of the rise; over end-2019 to end-March 2026 it was 15% for US stocks against 67% for euro-area stocks and bonds, which are measured in euros: both comparisons are in the text.

Source: Federal Reserve via FRED; datasteg calculation · Data to Q2 2026^{Source 1,Source 7}

About this chart

Definition: Rest of the world: corporate equities and investment fund shares, US issues; holdings at market value (level) and net purchases (transactions).
Calculation: Rise in holdings = holdings at each quarter-end − holdings at end-Q4 2019. Net buying = net purchases added up from Q1 2020. Gap = rise in holdings − net buying.
Provider: Federal Reserve, Financial Accounts of the United States (Z.1), via FRED
Series: BOGZ1FL263064003Q, BOGZ1FU263064003Q
Period: Q4 2019 – Q2 2026
Last observation: Q2 2026
Retrieved: 19 Oct 2026
Licence: Federal Reserve data via FRED: public domain, citation requested
Sources: Foreign holdings of US stocks and fund shares (market value), Foreign net purchases of US stocks and fund shares

Download CSV

Foreign holdings in the euro area grew differently. From end-2019 to end-March 2026, buying made up 15% of the rise in foreigners' US stocks, but 67% of the rise in their euro-area stocks and bonds, measured in euros⁠^{Source 1,Source 5,Source 7,Source 9}. The comparison is rough: the euro-area figure covers bonds as well as stocks, so part of the gap reflects that mix rather than the place.

Research finds that year-to-year changes in countries' net foreign positions come mainly from valuation changes, not new money⁠^{Source 18}. For the US, an OECD paper finds that this mainly reflects US stocks outrunning others', partly on recent gains in AI-exposed firms⁠^{Source 20}. A pile that grew on price can shrink without anyone selling.

Where new money went

Of the new money we can measure, the US drew the most; none of the sources we used ranks every country's inflows, so we compare it with the euro area and Korea. In the year to June 2026, foreigners' net purchases of US stocks and bonds, the bulk of their portfolio investment, came to $1.79 trillion, the most for any four quarters in data back to 2006⁠^{Source 1,Source 2,Source 3,Source 4}. It was a record only just, 1.4% above the year to June 2025⁠^{Source 1,Source 2,Source 3,Source 4}.

The euro area drew a record by its own history too. Foreigners bought €1.12 trillion of its securities over the same year, or $1.31 trillion, the most in data going back to 2007⁠^{Source 5,Source 6}. The second quarter of 2026 alone brought €367 billion, also a record⁠^{Source 5}. Even so, the US took in 1.4 times as much⁠^{Source 1,Source 2,Source 3,Source 4,Source 5,Source 6}.

Money runs both ways, so gross and net flows tell different stories⁠^{Source 21}. Americans bought $462 billion of foreign securities over the year, so the US net inflow was $1.32 trillion, below its record of $1.49 trillion a year earlier⁠^{Source 1,Source 2,Source 3,Source 4,Source 10,Source 11}. Euro-area residents bought €820 billion abroad, cutting the euro area's net inflow to €303 billion, or $352 billion⁠^{Source 5,Source 6}. Measured in euros, that was its most since Q4 2009 but not a record, and the US net inflow was 3.8 times as large⁠^{Source 1,Source 2,Source 3,Source 4,Source 5,Source 6,Source 10,Source 11}.

The chart below tracks both measures for both economies since 2007.

Figure 2

In the year to June 2026 foreigners bought $1.79 trillion of US securities and $1.31 trillion of euro-area ones; net of residents' buying abroad, the US took in $1.32 trillion and the euro area $352 billion

Foreign purchases of US and euro-area securities, and the net inflow after residents' buying abroadUSD billion, four-quarter sums, Q4 2007–Q2 2026

How to read this chart. Each 'bought' line is what foreigners bought, net of sales, in that economy over the previous four quarters; each 'net' line (dashed) subtracts what its own residents bought abroad. Below zero, more went out than came in.

US: stocks and fund shares, Treasuries (bills included), agency and corporate bonds, from the Fed's Financial Accounts; municipal bonds are not included. Euro area (21 countries): all portfolio securities, from Eurostat, converted to dollars at each quarter's average ECB rate.

The US 'bought' line is at its highest in data back to 2006, just above the year to June 2025; the US net line peaked in the year to June 2025 at $1.49 trillion. The euro area's 'bought' line is at its highest in data back to 2007; its net line is not.

The euro area's 'bought' line ends at $1.31 trillion, almost on top of the US net line's end ($1.32 trillion), so only one of the two ends is labelled; the legend and the table view tell them apart.

The euro-area lines in euros, without exchange-rate effects, are in the text. Korea, measured from a different source and window, has its own chart.

Source: Federal Reserve via FRED; Eurostat; ECB Data Portal; datasteg calculation · Data to Q2 2026^{Source 1,Source 2,Source 3,Source 4,Source 5,Source 6,Source 10,Source 11}

About this chart

Definition: US: net purchases of US stocks and fund shares, Treasuries, agency and GSE-backed securities and corporate bonds by the rest of the world, and US residents' net purchases of foreign stocks, fund shares and bonds (Fed Financial Accounts). Euro area: portfolio investment liabilities (non-residents' net purchases) and assets (residents' net purchases abroad), balance of payments, EA21.
Calculation: Bought = four-quarter sum of foreign net purchases. Net = bought − four-quarter sum of residents' net purchases abroad. Euro-area quarters converted to dollars at each quarter's average ECB rate before summing.
Provider: Federal Reserve via FRED; Eurostat; ECB Data Portal
Series: BOGZ1FU263064003Q, BOGZ1FU263061105Q, BOGZ1FU263061705Q, BOGZ1FU263063005Q, BOGZ1FU263164100Q, BOGZ1FU263163005Q, bop_eu6_q?freq=Q&currency=MIO_EUR&bop_item=FA__P__F&stk_flow={LIAB,ASS}&partner=EXT_EA21&sector10=S1&sectpart=S1&s_adj=NSA&geo=EA21, EXR.Q.USD.EUR.SP00.A
Period: Q4 2007 – Q2 2026
Last observation: Q2 2026
Retrieved: 19 Oct 2026
Licence: Federal Reserve data via FRED: public domain, citation requested; Eurostat: CC BY 4.0; ECB: reuse with attribution
Sources: Foreign net purchases of US stocks and fund shares, Foreign net purchases of US Treasury securities, Foreign net purchases of US agency and GSE-backed securities, Foreign net purchases of US corporate bonds, US investors' net purchases of foreign stocks and fund shares, US investors' net purchases of foreign bonds, European Union and euro area balance of payments - quarterly data (BPM6) (EA21), US dollar/Euro ECB reference exchange rate

Download CSV

Fund data show the tilt can shift for a while. In the second quarter of 2025, flows into government bond funds targeting the euro area and other advanced economies outpaced those into US funds⁠^{Source 13}. Between late November 2025 and early March 2026, stock-fund flows appeared to shift towards Europe and emerging markets⁠^{Source 22}.

These are shifts in fund flows, not totals of all buying. Research on the months after the April 2025 tariff shock found no material shift away from US assets, at least in the evidence it had, up to mid-2025⁠^{Source 13}.

Stocks in America, bonds in Europe

In the US, foreigners' market of choice was stocks. They bought $923 billion of US stocks and fund shares in the year to June 2026, 52% of all their US buying and the most for any four quarters in data back to 2006⁠^{Source 1,Source 2,Source 3,Source 4}. A few years earlier they had bought almost none: net sales of $53 billion in 2021, then purchases of just $3 billion in 2022 and $45 billion in 2023⁠^{Source 1}.

Bonds drew less. Foreigners bought $443 billion of US corporate bonds and $125 billion of bonds issued or backed by US government agencies⁠^{Source 3,Source 4}. Their buying of US Treasuries, short-term bills included, fell to $294 billion, 16% of the total, from $745 billion in the year to March 2025⁠^{Source 2}. The chart below compares each type of security with a year earlier.

Figure 3

Foreigners bought more US stocks and fewer Treasuries: stock purchases rose to $923 billion in the year to June 2026 while Treasury purchases fell to $294 billion

Foreign net purchases of US securities by type, year to June 2025 and year to June 2026USD billion, four-quarter sums ending Q2 2025 and Q2 2026

How to read this chart. The hollow dot is what foreigners bought, net, in the year to June 2025; the filled dot, the year to June 2026. A filled dot to the right means they bought more.

Stocks include investment fund shares. Treasuries include short-term bills. Agency bonds are securities issued or backed by US government agencies and sponsored enterprises. Municipal bonds are not in the Fed's total.

Foreign Treasury buying peaked more recently at $745 billion in the year to March 2025; the chart compares years ending in June. Stocks were 52% of all foreign buying of US securities in the year to June 2026.

Source: Federal Reserve via FRED; datasteg calculation · Data to Q2 2026^{Source 1,Source 2,Source 3,Source 4}

About this chart

Definition: Rest of the world: net purchases (transactions) of US corporate equities and investment fund shares, US corporate bonds, Treasury securities, and agency and GSE-backed securities.
Calculation: Four-quarter sums of quarterly net purchases: Q3 2024–Q2 2025 and Q3 2025–Q2 2026, divided by 1,000 (USD million to billion).
Provider: Federal Reserve, Financial Accounts of the United States (Z.1), via FRED
Series: BOGZ1FU263064003Q, BOGZ1FU263063005Q, BOGZ1FU263061105Q, BOGZ1FU263061705Q
Period: Q3 2024 – Q2 2026
Last observation: Q2 2026
Retrieved: 19 Oct 2026
Licence: Federal Reserve data via FRED: public domain, citation requested
Sources: Foreign net purchases of US stocks and fund shares, Foreign net purchases of US corporate bonds, Foreign net purchases of US Treasury securities, Foreign net purchases of US agency and GSE-backed securities

Download CSV

The level of US interest rates alone does not account for the drop. The 10-year Treasury rate averaged 4.28% in the year to March 2025 and 4.24% in the year to June 2026, about the same, yet foreign Treasury buying fell⁠^{Source 2,Source 12}. It has since risen: in September 2026, a month the flow data do not yet cover, it averaged 4.99%, the highest since July 2007⁠^{Source 12}. The drop fits a shift in what foreigners want to hold, but does not prove one.

In the euro area, bonds led instead. Bonds and other debt securities took 56% of foreign buying over the year, €624 billion against €499 billion for stocks⁠^{Source 5}.

Why the money goes there

The research points to company earnings, deep markets and the AI boom, but it links investors' favour to these factors rather than measuring how much each matters. The BIS links investors' favour for US assets to resilient US corporate earnings and unmatched market depth⁠^{Source 13}, and finds they favoured US stocks as their way into AI firms⁠^{Source 14}.

Those firms loom large. AI firms grew from about a quarter to two-fifths of US stock-market value in 2022–25⁠^{Source 16}, and the Magnificent 7 tech giants made up about a sixth of foreigners' US stocks in 2022, the latest figure we found⁠^{Source 23}. US business investment in information-processing equipment and software reached 5.1% of GDP in the second quarter of 2026, the highest since at least 1995 and above its dot-com peak of 4.5% in Q4 2000⁠^{Source 14,Source 17,Source 24}.

The evidence suggests the dollar's fall did not mean money leaving. The dollar fell 7.5% against a broad basket of currencies from its January 2025 peak to September 2026, and the euro rose 11% against it⁠^{Source 6,Source 25}. Research on April 2025 suggests that the dollar's slide was not correlated with selling of US assets, at least not at high frequency and not of Treasuries⁠^{Source 19}. In the following months, foreigners by and large held on to US assets but appear to have managed currency risk more cautiously⁠^{Source 13}.

Many had skipped currency hedging, protection against a falling dollar, while it rose in 2021–24⁠^{Source 19}. For the months since, the purchases to June 2026 shown above say money kept arriving⁠^{Source 1,Source 2,Source 3,Source 4}.

Interest rates moved too. Germany's 10-year rate rose 1.29 pp from December 2024 to September 2026, against 0.60 pp for the US's, so the gap between them, measured in basis points, narrowed from 221bp to 152bp⁠^{Source 12,Source 26}. That is consistent with Europe's bond inflow, not proof of a cause.

Prices also travel further than money. In smaller economies, the global factors behind the global financial cycle explain far more of the swings in interest rates and asset prices than in capital flows⁠^{Source 27}. That is consistent with a pile swelling on price while new money goes its own way.

Korea: rising prices, departing money

Korea shows the same gap between price and new money. As an exporter of AI hardware such as chips, it gained as its export prices outpaced its import costs⁠^{Source 16}. Its terms of trade rose 38% from a low in July 2022 to September 2026; apart from August 2026, they had not been that high since September 2007⁠^{Source 28}. The gains are concentrated: five firms accounted for more than two-fifths of Korea's export earnings in early 2026, up from about a quarter two years before⁠^{Source 16}.

Korean stocks rose strongly in late 2025 and early 2026⁠^{Source 22}. Yet foreigners sold a net $104 billion of Korean stocks and fund shares in the twelve months to June 2026, the most for any twelve months in data back to 2007⁠^{Source 15}. They bought $49 billion of Korean bonds, so a net $56 billion left Korean securities⁠^{Source 29,Source 30}. In the twelve months to August 2026, net selling of the two together reached $60 billion, also the most in data back to 2007⁠^{Source 30}.

So while money flowed into US stocks, foreign money did not carry Korea's rally. For emerging Asian economies that have become net creditors, the BIS adds, the boost from a weaker dollar may turn into a drag in future; it does not single out Korea⁠^{Source 31}. The chart below shows foreigners' net buying of Korean stocks and bonds since 2007.

Figure 4

Foreigners sold a net $104 billion of Korean stocks in the year to June 2026, the most in data back to 2007, while still buying Korean bonds

Foreign net purchases of Korean stocks and bondsUSD billion, 12-month sums, Dec 2007–Aug 2026

How to read this chart. Above zero, foreigners bought more Korean securities than they sold over the previous 12 months; below zero, they sold more.

Balance-of-payments flows: portfolio investment liabilities, equity (stocks and fund shares) and debt securities (bonds). Each point sums the 12 months to that month.

The stock line ends in August 2026, at net selling of $103 billion; the low, $104 billion, was in the 12 months to June 2026.

Taken together, a net $56 billion of foreign money left Korean securities in the year to June 2026; the total is in the text rather than drawn, to keep the split between stocks and bonds clear.

The KOSPI index is not shown: its data are not licensed for publication here. The rally of late 2025 and early 2026 is described in the text.

Source: Bank of Korea, ECOS; datasteg calculation · Data to Aug 2026^{Source 15,Source 29,Source 30}

About this chart

Definition: Korea's balance of payments, financial account: portfolio investment liabilities, equity securities and debt securities (foreign investors' net purchases of Korean securities), monthly, USD million.
Calculation: 12-month rolling sums of monthly flows, divided by 1,000 (USD million to billion).
Provider: Bank of Korea, ECOS
Series: 301Y013/M/BOPF22100000, 301Y013/M/BOPF22200000, 301Y013/M/BOPF22000000
Period: Jan 2007 – Aug 2026
Last observation: Aug 2026
Retrieved: 19 Oct 2026
Licence: ECOS Open API terms: reuse allowed with attribution
Sources: Korea: foreign investors' net purchases of Korean stocks and fund shares (portfolio investment liabilities, equity), Korea: foreign investors' net purchases of Korean debt securities (portfolio investment liabilities, debt), Korea: foreign investors' net purchases of Korean securities (portfolio investment liabilities, total)

Download CSV

Who gains, and who bears the risk

The gains go to whoever owns the assets, and ownership is concentrated. In the US the richest one per cent of households hold 50.9% of the stocks and fund shares that households own, the next nine per cent 37.2% and the bottom half 0.6%⁠^{Source 8,Source 32,Source 33}. These are shares of what households hold, not of all US stocks.

That top share is below its 2019 peak of 52.3%, the highest in data back to 1989, but it has edged up since a low of 49.3% in Q3 2022⁠^{Source 8}. The chart below shows each group's share in mid-2026.

Figure 5

The richest 1% of US households own 50.9% of household-held stocks and funds; the bottom half own 0.6%

Share of US household-held stocks and mutual funds, by wealth group% of the total held by US households, Q2 2026

How to read this chart. Households are ranked by wealth. 'Next 9%' is the 90th to 99th percentiles; 'Next 40%' the 50th to 90th. The four bars add up to 100%, give or take rounding.

Shares of the corporate equities and mutual fund shares held by US households; stocks held by foreigners, pension funds and other institutions are outside the total.

The top 1% share is below its 2019 peak of 52.3%, the highest in data back to 1989, but has edged up since a low of 49.3% in Q3 2022.

Source: Federal Reserve via FRED · Data to Q2 2026^{Source 8,Source 32,Source 33,Source 34}

About this chart

Definition: Share of corporate equities and mutual fund shares held by each wealth group of US households: top 1%, 90th–99th percentiles, 50th–90th percentiles and bottom 50%.
Calculation: As published, Q2 2026.
Provider: Federal Reserve, Distributional Financial Accounts, via FRED
Series: WFRBST01122, WFRBSN09149, WFRBSN40176, WFRBSB50203
Period: Q2 2026 – Q2 2026
Last observation: Q2 2026
Retrieved: 19 Oct 2026
Licence: Federal Reserve data via FRED: public domain, citation requested
Sources: Share of US household-held stocks and mutual fund shares owned by the top 1% (by wealth), Share of US household-held stocks and mutual fund shares owned by the next 9% (90th to 99th wealth percentiles), Share of US household-held stocks and mutual fund shares owned by the 50th to 90th wealth percentiles, Share of US household-held stocks and mutual fund shares owned by the bottom 50% (by wealth)

Download CSV

Higher AI valuations have made asset-owning households richer and supported their spending, mainly in the US⁠^{Source 16}. One model finds foreign money can widen US wealth gaps by pushing up asset prices, though it covers 1989–2016, not today, and suggests the effect may partly reverse⁠^{Source 35}.

Foreign holders shared in the rise: price changes and other adjustments added $4.89 trillion to their US stocks since end-2024⁠^{Source 1,Source 7}. The mirror-image improvement in other countries' foreign positions has eased financial conditions and lifted growth in many countries outside the US, though it has also left them more exposed, a BIS paper says⁠^{Source 18}. Euro-area households alone hold hundreds of billions of euros in US tech firms, ECB President Christine Lagarde said in September 2026⁠^{Source 36}.

The risk sits in the same places. The BIS sees overly optimistic expectations of AI as a key risk⁠^{Source 16}. It also finds that lenders' pricing of AI firms is at odds with stock valuations: either lenders may be underestimating the risks of AI investments or equity markets may be overestimating the future cash flows AI could generate⁠^{Source 14}.

Of the scenarios one BIS paper studied, a sharp fall in US stocks has the potential to shrink global imbalances the most and fastest⁠^{Source 18}. In its scenario of a fall in US stocks, the US net equity position would improve from a quarter of GDP in the red to a small fraction⁠^{Source 18}. That position is the equity Americans own abroad minus the US equity foreigners own, so it improves as foreigners' US holdings lose value.

European savers hold US tech mostly through funds that would have to sell into a falling market, Lagarde warned⁠^{Source 36}, and positions built fast can unravel suddenly⁠^{Source 21}. For emerging markets, a stronger dollar runs the financial loop in reverse⁠^{Source 31}. No yardstick ranks these groups, and these are conditions, not forecasts.

Terms in this article

net international investment position: What a country's residents own abroad minus what foreigners own in that country. A negative position means foreigners own more of the country than it owns of the rest of the world.
net purchases: What investors bought of an asset over a period minus what they sold. A negative figure means they sold more than they bought (net sales).
valuation effect: The change in the value of assets investors already hold that comes from prices or exchange rates moving, not from buying or selling.
portfolio investment: Buying stocks, fund shares and bonds across borders without taking control of the companies concerned, unlike direct investment.
gross and net flows: The gross inflow is what foreigners buy of a country's assets; the net inflow subtracts what the country's own residents buy abroad. A country can draw a large gross inflow and still have a small net one.
Magnificent 7: Seven of the largest US technology companies, Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, whose shares make up a large part of US stock indices.
currency hedging: Contracts that protect an investor holding foreign assets against losses if the foreign currency falls. Hedging does not mean selling the assets.
basis point: A hundredth of a percentage point, the usual unit for small gaps and changes in interest rates.
global financial cycle: The tendency of asset prices, credit and capital flows around the world to rise and fall together, often with US monetary policy and investors' appetite for risk.
terms of trade: The price of a country's exports relative to the price of its imports. When it rises, the same exports pay for more imports.

References

Research

13
Boissay, F., Huang, W. (2025). The safe haven properties of US Treasuries and portfolio flows of global investors. BIS Quarterly Review September 2025, Box B. BIS
Read the source ↗Cited in: ↑ Key findings, ↑ Where foreign money sits, ↑ Where new money went, ↑ Why the money goes there
14
Aldasoro, I., Doerr, S., Rees, D. (2026). Financing the AI boom: from cash flows to debt. BIS Bulletin 120. BIS
Read the source ↗Cited in: ↑ Key findings, ↑ Why the money goes there, ↑ Who gains, and who bears the risk
16
Aldasoro, I., Gambacorta, L., Kharroubi, E., Rottner, M. (2026). AI and the global economy: implications for central banks. BIS Bulletin 130. BIS
Read the source ↗Cited in: ↑ Key findings, ↑ Why the money goes there, ↑ Korea: rising prices, departing money, ↑ Who gains, and who bears the risk
18
Avdjiev, S., Forbes, K., Nenova, T., Santos, M. (2026). Unraveling the cobweb of global imbalances: drivers, vulnerabilities, and adjustment scenarios. BIS Working Papers 1379. BIS
Read the source ↗PDF ↗Cited in: ↑ Where foreign money sits, ↑ Who gains, and who bears the risk
19
Shin, H.S., Wooldridge, P., Xia, D. (2025). US dollar's slide in April 2025: the role of FX hedging. BIS Bulletin 105. BIS
Read the source ↗Cited in: ↑ Where foreign money sits, ↑ Why the money goes there
20
Frohm, E., Hooley, J., Ozturk, F., Rawdanowicz, L., Sivakumar, N. (2026). Current account imbalances, facts, drivers, and policy challenges. OECD Economics Department Working Papers 1869. OECD
Read the source ↗Cited in: ↑ Where foreign money sits
21
BIS (2025). II. Financial conditions in a changing global financial system. BIS Annual Economic Report 2025, chapter II.
Read the source ↗PDF ↗Cited in: ↑ Where new money went, ↑ Who gains, and who bears the risk
22
BIS (2026). Markets recalibrate amid shifting currents. BIS Quarterly Review March 2026.
Read the source ↗PDF ↗Cited in: ↑ Where new money went, ↑ Korea: rising prices, departing money
23
Bertaut, C., Curcuru, S., Faia, E., Gourinchas, P.-O. (2024). New Evidence on the US Excess Return on Foreign Portfolios. IMF Working Papers 2024/241. IMF
Read the source ↗PDF ↗Cited in: ↑ Why the money goes there
27
Cerutti, E., Claessens, S. (2024). The Global Financial Cycle: Quantities versus Prices. IMF Working Papers 2024/158. IMF
Read the source ↗PDF ↗Cited in: ↑ Why the money goes there
31
Juselius, M., Wooldridge, P., Xia, D. (2025). Financial channel implications of a weaker dollar for emerging market economies. BIS Bulletin 114. BIS
Read the source ↗Cited in: ↑ Korea: rising prices, departing money, ↑ Who gains, and who bears the risk
35
Kim, T. (2021). Safe Asset Demand, Global Capital Flows and Wealth Concentration. IMF Working Papers 2021/254. IMF
Read the source ↗PDF ↗Cited in: ↑ Who gains, and who bears the risk

Speeches and statements

36
Lagarde, C. (2026). Christine Lagarde: A new age of capital - growth, sovereignty and AI. BIS central bankers' speeches 20260924. European Central Bank
Read the source ↗PDF ↗Cited in: ↑ Who gains, and who bears the risk

Data

1
FRED, Federal Reserve Bank of St. Louis. Foreign net purchases of US stocks and fund shares. BOGZ1FU263064003Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FU263064003Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where foreign money sits, ↑ Where new money went, ↑ Stocks in America, bonds in Europe, ↑ Why the money goes there, ↑ Who gains, and who bears the risk
2
FRED, Federal Reserve Bank of St. Louis. Foreign net purchases of US Treasury securities. BOGZ1FU263061105Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FU263061105Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where new money went, ↑ Stocks in America, bonds in Europe, ↑ Why the money goes there
3
FRED, Federal Reserve Bank of St. Louis. Foreign net purchases of US corporate bonds. BOGZ1FU263063005Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FU263063005Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where new money went, ↑ Stocks in America, bonds in Europe, ↑ Why the money goes there
4
FRED, Federal Reserve Bank of St. Louis. Foreign net purchases of US agency and GSE-backed securities. BOGZ1FU263061705Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FU263061705Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where new money went, ↑ Stocks in America, bonds in Europe, ↑ Why the money goes there
5
Eurostat. European Union and euro area balance of payments - quarterly data (BPM6) (EA21). bop_eu6_q?freq=Q&currency=MIO_EUR&bop_item=FA__P__F&stk_flow=LIAB&partner=EXT_EA21&sector10=S1&sectpart=S1&s_adj=NSA&geo=EA21, bop_eu6_q?freq=Q&currency=MIO_EUR&bop_item=FA__P__F&stk_flow=ASS&partner=EXT_EA21&sector10=S1&sectpart=S1&s_adj=NSA&geo=EA21, bop_eu6_q?freq=Q&currency=MIO_EUR&bop_item=FA__P__F3&stk_flow=LIAB&partner=EXT_EA21&sector10=S1&sectpart=S1&s_adj=NSA&geo=EA21, bop_eu6_q?freq=Q&currency=MIO_EUR&bop_item=FA__P__F5&stk_flow=LIAB&partner=EXT_EA21&sector10=S1&sectpart=S1&s_adj=NSA&geo=EA21. Retrieved 19 Oct 2026.
Finding the series: The link opens dataset bop_eu6_q in Eurostat's Data Browser. Use the filters above the table (“Customise your dataset”) to select the series; in codes: freq = Q; currency = MIO_EUR; bop_item = FA__P__F, FA__P__F3, FA__P__F5; stk_flow = LIAB, ASS; partner = EXT_EA21; sector10 = S1; sectpart = S1; s_adj = NSA; geo = EA21.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where foreign money sits, ↑ Where new money went, ↑ Stocks in America, bonds in Europe
6
ECB Data Portal. US dollar/Euro ECB reference exchange rate. EXR.M.USD.EUR.SP00.A, EXR.Q.USD.EUR.SP00.A. Retrieved 19 Oct 2026.
Finding the series: The link opens EXR.M.USD.EUR.SP00.A in the ECB Data Portal. The other series (EXR.Q.USD.EUR.SP00.A) are in the same dataset EXR: replace the series key at the end of the link, or type the key in the portal's search box.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where foreign money sits, ↑ Where new money went, ↑ Why the money goes there
7
FRED, Federal Reserve Bank of St. Louis. Foreign holdings of US stocks and fund shares (market value). BOGZ1FL263064003Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FL263064003Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Where foreign money sits, ↑ Who gains, and who bears the risk
8
FRED, Federal Reserve Bank of St. Louis. Share of US household-held stocks and mutual fund shares owned by the top 1% (by wealth). WFRBST01122. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series WFRBST01122 directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key numbers, ↑ Key findings, ↑ Who gains, and who bears the risk
9
Eurostat. Euro area (21) international investment position: portfolio investment liabilities (non-residents' holdings of euro-area securities), end of quarter, EUR mn. bop_iip6_q?freq=Q&currency=MIO_EUR&bop_item=FA__P__F&stk_flow=L_LE&partner=EXT_EA21&sector10=S1&sectpart=S1&geo=EA21. Retrieved 19 Oct 2026.
Finding the series: The link opens dataset bop_iip6_q in Eurostat's Data Browser. Use the filters above the table (“Customise your dataset”) to select Million euro; Financial account; portfolio investment; Total economy; Liabilities - positions at the end of period; Extra-euro area - 21 countries (from 2026); in codes: freq = Q; currency = MIO_EUR; bop_item = FA__P__F; stk_flow = L_LE; partner = EXT_EA21; sector10 = S1; sectpart = S1; geo = EA21.
Data source ↗Cited in: ↑ Key findings, ↑ Where foreign money sits
10
FRED, Federal Reserve Bank of St. Louis. US investors' net purchases of foreign stocks and fund shares. BOGZ1FU263164100Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FU263164100Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key findings, ↑ Where new money went
11
FRED, Federal Reserve Bank of St. Louis. US investors' net purchases of foreign bonds. BOGZ1FU263163005Q. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series BOGZ1FU263163005Q directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key findings, ↑ Where new money went
12
FRED, Federal Reserve Bank of St. Louis. US 10-year Treasury yield, monthly average. DGS10. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series DGS10 directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Key findings, ↑ Stocks in America, bonds in Europe, ↑ Why the money goes there
15
Bank of Korea, ECOS. Korea: foreign investors' net purchases of Korean stocks and fund shares (portfolio investment liabilities, equity). 301Y013/M/BOPF22100000. Retrieved 19 Oct 2026.
Finding the series: On ECOS (ecos.bok.or.kr), open 통계검색 (Statistics search) and type the table name “국제수지” or its code 301Y013 in the search box, or follow the statistics list 2. 국민계정 > 2.5. 국제수지표 > 2.5.1. 국제수지 > 2.5.1.1. 국제수지. In the table, select 국제수지(BPM6): 주식(부채). Set the cycle (주기) to monthly, choose the period, and click 조회 (Search).
Data source ↗Cited in: ↑ Key findings, ↑ Korea: rising prices, departing money
17
FRED, Federal Reserve Bank of St. Louis. US gross domestic product, current dollars, annual rate. GDP. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series GDP directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Where foreign money sits, ↑ Why the money goes there
24
FRED, Federal Reserve Bank of St. Louis. US business investment in information processing equipment and software, annual rate. A679RC1Q027SBEA. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series A679RC1Q027SBEA directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Why the money goes there
25
FRED, Federal Reserve Bank of St. Louis. US dollar against a broad basket of currencies (Federal Reserve index), monthly average. DTWEXBGS. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series DTWEXBGS directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Why the money goes there
26
ECB Data Portal. 10-year government bond yield, Germany. IRS.M.DE.L.L40.CI.0000.EUR.N.Z. Retrieved 19 Oct 2026.
Finding the series: The link opens the series IRS.M.DE.L.L40.CI.0000.EUR.N.Z directly in the ECB Data Portal (dataset IRS), with a chart, the data table and a download button.
Data source ↗Cited in: ↑ Why the money goes there
28
Bank of Korea, ECOS. Korea: net barter terms of trade index. 403Y005/M/A. Retrieved 19 Oct 2026.
Finding the series: On ECOS (ecos.bok.or.kr), open 통계검색 (Statistics search) and type the table name “교역조건지수” or its code 403Y005 in the search box, or follow the statistics list 3. 환율/통관수출입/외환보유액 > 3.3. 무역지수/교역조건지수(2020=100) > 3.3.2. 교역조건지수. In the table, select 교역조건구분: 순상품교역조건지수. Set the cycle (주기) to monthly, choose the period, and click 조회 (Search).
Data source ↗Cited in: ↑ Korea: rising prices, departing money
29
Bank of Korea, ECOS. Korea: foreign investors' net purchases of Korean debt securities (portfolio investment liabilities, debt). 301Y013/M/BOPF22200000. Retrieved 19 Oct 2026.
Finding the series: On ECOS (ecos.bok.or.kr), open 통계검색 (Statistics search) and type the table name “국제수지” or its code 301Y013 in the search box, or follow the statistics list 2. 국민계정 > 2.5. 국제수지표 > 2.5.1. 국제수지 > 2.5.1.1. 국제수지. In the table, select 국제수지(BPM6): 부채성증권(부채). Set the cycle (주기) to monthly, choose the period, and click 조회 (Search).
Data source ↗Cited in: ↑ Korea: rising prices, departing money
30
Bank of Korea, ECOS. Korea: foreign investors' net purchases of Korean securities (portfolio investment liabilities, total). 301Y013/M/BOPF22000000. Retrieved 19 Oct 2026.
Finding the series: On ECOS (ecos.bok.or.kr), open 통계검색 (Statistics search) and type the table name “국제수지” or its code 301Y013 in the search box, or follow the statistics list 2. 국민계정 > 2.5. 국제수지표 > 2.5.1. 국제수지 > 2.5.1.1. 국제수지. In the table, select 국제수지(BPM6): 증권투자(부채). Set the cycle (주기) to monthly, choose the period, and click 조회 (Search).
Data source ↗Cited in: ↑ Korea: rising prices, departing money
32
FRED, Federal Reserve Bank of St. Louis. Share of US household-held stocks and mutual fund shares owned by the next 9% (90th to 99th wealth percentiles). WFRBSN09149. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series WFRBSN09149 directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Who gains, and who bears the risk
33
FRED, Federal Reserve Bank of St. Louis. Share of US household-held stocks and mutual fund shares owned by the bottom 50% (by wealth). WFRBSB50203. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series WFRBSB50203 directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Who gains, and who bears the risk
34
FRED, Federal Reserve Bank of St. Louis. Share of US household-held stocks and mutual fund shares owned by the 50th to 90th wealth percentiles. WFRBSN40176. Retrieved 19 Oct 2026.
Finding the series: The link opens the FRED series WFRBSN40176 directly. Use “Edit Graph” to change the dates or units, and “Download” for the data.
Data source ↗Cited in: ↑ Who gains, and who bears the risk

Cite this article

If you use this article in research, a report or the news, please cite it as follows.

datasteg (2026), “Foreigners poured money into US stocks, yet buying built little of the rise in their pile”, datasteg articles, 20 October 2026, https://articles.datasteg.com/en/a/global-capital-flows-2026.

BibTeX

@online{datasteg:global-capital-flows-2026,
  author       = {{datasteg}},
  title        = {Foreigners poured money into US stocks, yet buying built little of the rise in their pile},
  organization = {datasteg articles},
  date         = {2026-10-20},
  url          = {https://articles.datasteg.com/en/a/global-capital-flows-2026}
}

PDF edition. A print layout of this article, with every figure, the references and this citation. English (11 pages, 0.4 MB) · Korean (10 pages, 0.7 MB)

Key numbers

Key findings

The question

Where foreign money sits

Where new money went

Stocks in America, bonds in Europe

Why the money goes there

Korea: rising prices, departing money

Who gains, and who bears the risk

Terms in this article

References

Research

Speeches and statements

Data

Related reading

Cite this article