Foreign Buying Added $14 Trillion to U.S. Stocks Since 1994 as S&P 500 Rose 23-Fold
Updated
Updated · Forbes · Jun 24
Foreign Buying Added $14 Trillion to U.S. Stocks Since 1994 as S&P 500 Rose 23-Fold
2 articles · Updated · Forbes · Jun 24
Summary
$14 trillion in U.S. stock value since 1994 is tied to higher foreign ownership, which now accounts for about 13% of the $107 trillion market beyond what 1994 ownership levels would imply.
The gap helps explain why the S&P 500 is 23 times its 1994 level while U.S. GDP only quadrupled and falling long-term interest rates would justify only about two-thirds of the price rise.
Emerging economies' share of global output climbed to 41% in 2025 from 18% in 1990, creating new wealth that often seeks the stability, investor protections and depth of U.S. markets.
Europe's slower growth also reinforced that flow: its inflation-adjusted economy is only 1.7 times its 1994 size versus 2.1 times for the U.S., making American markets look more attractive.
The analysis stops short of calling current valuations fair, but argues foreign demand is a fundamental reason U.S. stocks have outpaced the domestic economy for decades.