Global capital is flooding into US equities at the fastest pace in two decades. The Kobeissi Letter, a widely followed financial commentary account, posted data on July 3 revealing that year-to-date inflows from global funds into US stocks have reached 2.5% of total assets under management (AUM) — an all-time high. The ratio has more than doubled since May, signaling a panic buying spree.
2.5% vs Historical Norms: How Extreme Is the Buying?
To highlight the magnitude, The Kobeissi Letter compared 2026 data with the 2002-2025 average. Historically, foreign investors were net sellers during this period, with an average net outflow of 0.3% of AUM. The full-year median inflow stands at roughly 1.5%. This year, in just half a year, the inflow has already surpassed the total of a normal full year. The 2.5% allocation means global portfolio managers are pouring a record share of assets into a single country.
AI Mania Fuels FOMO, Community Warns of Systemic Risk
The post quickly went viral, amassing nearly 60,000 views within hours. Most traders attribute the surge to a global obsession with AI giants like Nvidia, Microsoft, and Apple. With few alternative markets offering comparable liquidity and growth potential, international funds have little choice but to go all-in on US assets.
Yet extreme crowding brings extreme fragility. Some conservative investors caution that if the Fed surprises on rates or AI earnings fail to meet sky-high expectations, the unprecedented hot money could stampede for the exits, triggering a systemic meltdown. The US stock market now stands at a crossroads between greed and fear.