The Kobeissi Letter, a markets commentary publication, reported on X today, September 29, 2026, that foreign investors have significantly increased their holdings in US equities. The publication highlighted that "Foreign investors bought a net +$426 billion of US equities and investment fund shares in Q2 2026, the largest quarterly purchase on record." This marks the ninth consecutive quarter of net purchases, accumulating to a total of +$1.6 trillion. The previous quarterly record was +$299 billion in Q2 2022. Additionally, foreign investor purchases of US equities and investment fund shares reached +$942 billion in the 12 months ending in July, setting a new rolling 12-month total in Treasury data since 1985.
This influx of foreign capital into US equities contrasts with a decline in foreign purchases of US debt securities, which fell to +$188 billion in Q2 2026 from +$314 billion in Q1 2026. The broader market saw mixed performance today, with the Nasdaq down 0.9% and the S&P 500 down 0.8%. Recent Gokhshtein coverage has focused on various aspects of market structure and capital flows, including SEC guidance on buybacks and the surge in protocol-linked token buybacks.
The Kobeissi Letter's report implies a strong international confidence in the US equity market, despite a reduction in demand for US debt. This trend suggests that global investors may be prioritizing equity exposure over fixed-income assets in the US. Market participants will likely watch if this record-setting pace of equity accumulation by foreign investors continues into the second half of 2026, and how it might influence overall market valuations and capital allocation strategies.
