Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors With investor allocation to equities at an all-time high, the market is increasingly vulnerable to volatility and significant losses, particularly if a downturn occurs. Image: Goldman Sachs Global Investment Research
Foreign Investor Ownership Share of U.S. Equity Market Foreign investors now hold a record 18% of U.S. stocks, but shifting trade policies and global economic uncertainties may affect future investment in American equities. Image: Goldman Sachs Global Investment Research
Foreign Investors Equity Allocation Percentile vs. History While trade policy concerns, slowing growth, and dollar depreciation have created headwinds, Goldman expects moderate foreign selling of U.S. equities in March-April, driven by valuation opportunities and strategic positioning. Image: Goldman Sachs Global Investment Research
Foreign Ownership of U.S. Equities by Region European investors, major holders of U.S. stocks, could impact valuations if trade tensions rise, potentially shifting focus to European markets benefiting from fiscal stimulus and increased defense spending. Image: Goldman Sachs Global Investment Research
U.S. Equities – Foreign Investors’ Net Portfolio Equity Flows Foreign investors’ recent behavior in U.S. equities—marked by limited activity and stable portfolio allocations—suggests a long-term bullish outlook on the resilience of the U.S. market. Image: Deutsche Bank
Share of U.S. Corporate Profits from Foreign Markets Foreign markets, including emerging markets, significantly contribute to the profits of U.S. corporations. Specifically, they account for 16% of U.S. corporate profits, with emerging markets making up 4% of these profits. Image: Goldman Sachs Global Investment Research
Liquidity – Securities Held in Custody at Fed for Foreign Official Accounts Should markets be worried about a new international liquidity crisis? Image: Gavekal, Macrobond
Germany Foreign Trade Balance Germany recorded its first trade deficit in goods since 1991. Could the euro fall further? Image: BofA Global Investment Strategy
Stocks – U.S. Equities Net Foreign Purchases Is it a warning sign if foreign investors are losing interest in U.S. stocks? Image: BCA Research
S&P 500 Foreign Sales % by Year The S&P 500 is more global than 2-3 decades ago, as 30% of S&P 500 sales come from overseas. Image: BofA US Equity & Quant Strategy
U.S. Treasuries Held by Foreign Official Accounts vs. U.S. Dollar Index A bearish move in the U.S. dollar tends to increase foreign official holdings of U.S. Treasuries. Image: BofA