Global Capital Shifts: Investors Exit US, Retail Buys In; Emerging Markets Gain
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CNBC TV18•12-01-2026, 13:57
Global Capital Shifts: Investors Exit US, Retail Buys In; Emerging Markets Gain
- •Global investors are withdrawing capital from US equity funds, with $28 billion in net redemptions in late December/early January.
- •US retail investors are actively buying US equities, with $10.1 billion purchased since early 2026, mainly via ETFs.
- •The fear of a stock market bubble, fueled by AI, persists, with historical data showing sharp corrections after 70% rolling returns in US funds.
- •Money is flowing into emerging markets like Korea and Taiwan, industrial commodities, and gold, indicating an anti-dollar trend.
- •India, despite being an emerging market, saw record foreign outflows in 2025 and has yet to see fresh inflows, with its Sensex being the worst-performing benchmark.
Why It Matters: Global capital is exiting US equities for emerging markets and commodities, while US retail investors buy in.
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