00:00Wall Street strategists are calling it a historic reversal in global money flows.
00:04For the first time ever, outside the financial crisis,
00:08overseas investors now favor U.S. stocks over U.S. government debt.
00:12Deutsche Bank's global head of FX Research says equity inflows into America
00:16have officially overtaken fixed income,
00:19with the foreign-held share of treasuries tumbling from more than 50% at its peak,
00:24down to about 30% today.
00:26Meanwhile, foreign ownership of U.S. stocks has climbed to an all-time high,
00:32pulling in a record $600 billion in net inflows.
00:35China's own treasury holdings dropped to $633 billion in June,
00:40down from over $730 billion just a year earlier.
00:43Analysts say the explanation comes down to two very different balance sheets.
00:48America's private sector is booming on AI and record profit margins,
00:52while its public sector keeps racking up deficits above 6% of GDP.
00:57That gap is now reshaping where the world's money wants to sit.
01:00Disclosure.
01:01This video contains stock footage and content created or enhanced using AI-assisted tools.
