The Contradiction of Global Investors: Criticizing America While Buying Its Assets
In a striking paradox that defines contemporary global finance, international investors are increasingly vocal in their criticism of the United States during daylight hours, yet actively purchase its stocks and bonds throughout the night. This phenomenon has become particularly pronounced as favorable opinions of the U.S. have plummeted worldwide, yet capital inflows have reached unprecedented levels.
Record Investment Amidst Rising Discontent
Recent data reveals a fascinating disconnect between rhetoric and action. Throughout 2025, foreign investors poured approximately US$1.6 trillion into American financial assets, setting new records. This included nearly US$700 billion directed specifically into U.S. equities, with foreign purchases of corporate bonds also increasing sharply. Remarkably, with the exception of a brief "Sell America" wave in April, foreigners were consistent buyers every single month of the year.
The trend extends beyond traditional markets, with investors from Singapore to Seoul staying awake during nighttime hours to trade on increasingly popular after-hours U.S. trading platforms. Foreign institutions now own nearly 15 percent of all U.S. stocks, representing a record share that has grown by half over the past decade.
The Psychology Behind the Paradox
Why would global investors continue to allocate substantial capital to a nation they publicly criticize? Several factors explain this apparent contradiction. First, inertia and past performance play significant roles. Since the global financial crisis of 2008, the U.S. has consistently outperformed other markets, creating a powerful psychological momentum that many investors continue to follow.
Additionally, the perception that "there is no alternative" persists among international money managers. The sheer scale, depth, and liquidity of American markets create an almost gravitational pull for global capital, regardless of political sentiments. This is particularly true in technology sectors, where the U.S. maintains a commanding lead that continues to attract investment from around the world.
Regional Variations in Investment Patterns
Interestingly, investment patterns vary significantly by region. European investors have long been enthusiastic buyers of American technology stocks, while South Korea emerged as the single largest source of foreign flows into the U.S. stock market last year. This reflects a particular fascination with assets tied to artificial intelligence and American technological innovation.
Notably, central banks represent one of the few exceptions to this trend, having moved some reserves from dollars into gold. Furthermore, global investors showed a slight hint of caution in 2025 by hedging more of their substantial dollar exposure compared to previous years.
Future Uncertainties and Market Evolution
Market analysts caution that the current "bash all day, buy all night" pattern may not continue indefinitely. The artificial intelligence stock mania raises important questions about which companies will ultimately prevail in the AI arms race, and whether they will necessarily be American. China has demonstrated competitive capabilities in AI development, with some models offering similar performance at lower training costs.
This evolving landscape suggests that while American markets currently benefit from what might be called a "critical investment paradox," global capital flows remain dynamic and subject to change as technological and geopolitical realities shift.
