Ripple Effect
Uncertainty or Not, Everyone’s Buying American
October 1, 2025 • 1 minute, 12 second read

In the first few months of the year, European stocks started outperforming U.S. stocks. There was talk of capital flows out of the U.S., and into Europe.
On the surface, that looked reasonable – a relative value play. But European investors continue to stay invested in the U.S. for one simple reason – it’s where the growth is.
Ditto the rest of the world. In fact, even as a government shutdown unfolds, foreign holdings of U.S. stocks are now at a record high:
Foreign investors continue to buy American (Source: Topdown Charts)
Over the past 15 years, the GDP in the U.S. has roughly doubled, thanks to advances in technology and a country that still encourages innovation first – not regulation as in EU countries.
In contrast, the Eurozone’s GDP has flatlined since the 2010 debt crisis. That’s 15 years of no growth, mixed with the same burst of pandemic-era inflation that impacted the U.S.
It’s a feature of the terrifying bull market underway. Valuations, margin debt, and government debt are historically high right now… and the U.S. stock market is the best game in town.
~ Addison
P.S. Our forecast for significantly higher gold prices continues to move in the right direction, with gold topping $3,900 this morning as the U.S. government enters a shutdown. Stay tuned!
If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.