American dream alive

Amidst the (geo)political noise, much has been said this year about the “end of US exceptionalism” and rising appetite for equities elsewhere, notably Europe. Yet reality tells a different story.

2025 so far has been a two-step: early-year diversification away from the US — which benefited Europe to some extent — followed by a strong late-summer re-acceleration into US equities. Foreign investors now hold a record 30% of the US stock market, underscoring their enduring confidence.

In contrast, flows into Europe remain more selective and structurally limited by lower retail equity participation. The US exceptionalism story, it seems, is still running, at least for equity investors.