Foreign-owned assets in the US hit an all time high of $26.54 Trillion at the end of 2013. Most of the gains came in the form of asset appreciation as opposed to direct capital inflows. To be honest with you, this is an irrelevant measure. It is simply indicative of what the US Stock market reflects. Overvaluation, speculation, massive credit expansion and credit mechanism dilution by the FED. At the end of the day it will move up or down in conjunction with the US stock market and the US Economy.
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Do Foreign Owned Assets Play An Important Role? Google
WSJ Reports: Foreign Investment in U.S. Hits New Record
Foreign investment in the U.S. hit a fresh record in the final quarter of 2013 as rising stock prices boosted the value of American assets, according to figures released Wednesday.
The value of foreign investment in the U.S. hit $26.54 trillion the fourth quarter, up $777.8 billion from the previous quarter and far surpassing a $372.1 billion increase in U.S. investments abroad, the Commerce Department’s Bureau of Economic Analysis said. Adjusting for inflation, the value of foreign investment surpassed the previous record in 2011 and is at the highest level since the data were first collected in 1976.
- Reuters
The quarterly report showed foreign investors and companies playing an expanding role in U.S. markets. The development has worried some economists, because it makes the U.S. more vulnerable to major shifts in the global economy. But it also could show strengthening confidence in the American economy.
The BEA said most of the quarterly increases were based on rising asset prices, rather than investors plowing more cash into markets. In that period, the Dow Jones Industrial Average rose by around 8% to new highs, buoyed by growing optimism about the U.S. economic outlook.
U.S. investments overseas were tempered by lingering concerns about Europe’s economic recovery and worries over tapering growth in large emerging markets.