European Investment in U.S. Stocks Reaches Record Levels

European investors have significantly increased their holdings in U.S. stocks, reaching a record $10.4 trillion. The Kobeissi Letter posted on X that this marks a surge of $4.9 trillion, or 91%, over the past three years. Countries including Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the UK collectively hold approximately $5.7 trillion in U.S. equities, accounting for 55% of total European holdings. In comparison, the rest of the world holds $10.9 trillion in U.S. stocks, indicating that European investors now represent about 49% of all foreign holdings of U.S. equities. This increase in European exposure to U.S. stocks is occurring despite ongoing trade tensions.