Foreign Investors Set Record with $646.8 Billion in US Stock Purchases Amid Changing Global Capital Flows – BitRss – Crypto World News

A powerful and unusual wave of global capital is rushing into US markets. Foreign investors are buying US equities at a record pace, demand for government bonds is being realigned at a structural level and domestic inflows are accelerating towards the end of the year.

At the same time, US consumer debt has reached its highest level in history. For crypto and equity investors, the size and direction of these flows indicate a major shift in risk appetite and global macro positioning.

Foreign investors are generating record stock purchases amid a historic reshuffle in government bond holdings

Retail investors outside the US bought $646.8 billion worth of US stocks in the 12 months ending September 2025, according to data cited by Yardeni Research.

This is the highest level ever and exceeds the 2021 peak by 66%, with flows doubling since January.

The purchase is not limited to US stocks. Purchases of U.S. Treasury bonds by foreign private investors totaled $492.7 billion during the same period. Rolling 12-month purchases of non-US Treasuries have remained above $400 billion for four years in a row, reflecting continued global demand for dollar-denominated security.

“Everyone wants US assets,” Kobeissi Letter analysts noted.

The composition of foreign treasury holders is changing in ways not seen in decades:

• China’s share of foreign government bonds has fallen to 7.6%, the lowest in 23 years, and by 20% in fourteen years.
• The UK share has quadrupled to 9.4%, almost an all-time high.
• Japan, still the largest foreign holder, now accounts for 12.9%, down 26 points in the past 21 years.

These shifts indicate a long-term repositioning of public and private capital, a trend with direct consequences for interest rates, liquidity and market volatility.

Domestic investors are also taking risks, but record levels of consumer debt add complexity

According to JPMorgan data, U.S. investors have poured a whopping $900 billion into stock funds since November 2024, with half of that total, $450 billion, coming in just in the past five months.

Fixed income funds added another $400 billion, while all other asset classes combined attracted only $100 billion.

Inflows into US equities have outpaced all other asset classes combined, reinforcing the strength of the bid for US risk assets.

As institutional and foreign investors increase their exposure, U.S. households are under increasing financial pressure. Total U.S. credit card debt rose to $1.233 trillion in the third quarter of 2025, the highest level on record.

This difference between market optimism and consumer excitement raises questions about sustainability, the resilience of profits and the timing of possible policy changes.

Seasonality and bullish projections increase sentiment

JP Morgan expects the S&P 500 to reach 8,000 next year, a view boosted by strong seasonal winds. This projection comes as markets anticipate the bank’s all-round rally forecast shared just over 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 delivering an average return of +1.28%.

For both the crypto and equity markets, the surge in capital flows to the US signals increasing confidence in US assets, or a lack of attractive alternatives abroad.

Investors will wait to see whether these inflows will accelerate in 2026, how demand for government bonds will shift as global assets rebalance, and whether record consumer debt will act as a drag on macroeconomic momentum.

As liquidity increases and seasonality increases, both traditional markets and digital assets are entering a potentially decisive phase.

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