Record rush into US stocks: $2.1 trillion of inflows since 2020
US equity funds have drawn $2.1 trillion since 2020, 4.5 times EM Asia, while European equity funds saw outflows. Four-week global equity inflows hit a record.
Despite the recent tech sell-off, money keeps pouring into US equities. Data from BofA and EPFR show demand for US stocks has reached unprecedented levels.
Cumulative flows since 2020
| Region | Cumulative equity fund flows |
|---|---|
| United States | +$2.1 trillion |
| EM Asia | +$470 billion |
| Europe | Outflow of about $246 billion (per the BofA chart) |
- $1.5 trillion of that has come in since the start of 2024 alone.
- Inflows to US equities are about 4.5 times those to EM Asia.
Last week
Global equity funds took in $89 billion, lifting the four-week total to a record $266 billion. US funds alone attracted $32 billion.
What to make of it
Investors appear to see the recent drop as a buying opportunity rather than the end of the trend. On the other hand, so much money concentrated in one market raises "crowded trade" risk: if a shock hits, simultaneous exits could deepen a sell-off. Contrarians usually read records like this as a reason for caution.
Market impact
- Dollar: steady foreign inflows into US stocks support demand for the dollar.
- Euro: continued outflows from European equities are a medium-term negative for the euro.
- US indices: strong inflows help the S&P 500 and Nasdaq absorb selling pressure.
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Sources: BofA Global Investment Strategy, EPFR
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