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StocksHigh Impact•21 February 2026•

1 min read

US Equity Inflows Plunge as Global Investors Pivot to International Markets

Key Facts

1US equities' share of global equity flows fell to just $26 for every $100, down from a peak of $92 in 2022.

2US equity flows have reached their lowest share of global flows since 2020 according to the "Flow Show" report.

3Global capital is migrating toward cheaper, growth-oriented markets in Europe, Japan, and Emerging Markets.

US stock markets are facing a significant strategic shift as global capital flows increasingly bypass Wall Street in favor of international alternatives. According to Bank of America’s "Flow Show" report, the US share of global equity flows has plummeted to just $26 for every $100, a sharp decline from its 2022 peak of $92. This marks the lowest level of US dominance in global capital allocation since 2020, signaling a major cooling of investor sentiment. Analysts point to extreme valuation premiums in the S&P 500 and a fading narrative in the technology sector as primary drivers for the exit. Consequently, institutional investors are rotating capital toward cheaper, growth-oriented markets in Europe, Japan, and Emerging Markets. This massive rebalancing suggests a potential period of underperformance for major US indices like the SPY and QQQ relative to global benchmarks.

Sources:

invezz.com