NCPA - National Center for Policy Analysis

Europeans Cash In On U.S. Stock Surge

March 18, 1999

European investors sent a flood of funds to U.S. stock markets in the past two years, no doubt handsomely enhancing their personal portfolios. Americans, on the other hand, unloaded European equities in 1998, even though markets there rallied 29 percent last year.

Here are some figures developed by Joseph P. Quinlan of Morgan Stanley Dean Witter:

  • While most other foreigners were cutting back their purchases of U.S. stocks, Europeans poured some $72.3 billion into American stocks, on top of a hefty $62.7 billion in 1997 -- thus capitalizing on Wall Street's nearly 70 percent bull run in the past two years.
  • That $135 billion total dwarfs Europe's $11.8 billion investment over the prior nine years.
  • Meanwhile, Americans sold off some $26 billion worth of European equities last year.
  • Europe was the only major region to experience a net outflow of U.S. money from its stock markets.

Source: Gene Koretz, "Wall Street's Continental Lift," Business Week, March 22, 1999.


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