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The rest of the world has extracted $13 trillion in profit from U.S. equity markets, a figure that ranks among the most consequential wealth transfers in modern financial history.
That same bet, staggeringly lucrative on the way up, has left foreign portfolios far more exposed to a U.S. market crash than they have ever been.
A Windfall Built on Concentration The $13 trillion haul reflects decades of international capital flowing into American stocks and compounding at a rate that no comparable allocation could match.
For portfolio managers outside the United States, the trade was straightforward: overweight U.S. equities, underweight everything else, collect the difference.
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