Goldman Sachs expert says US stocks will retain their popularity among international investors

According to David J. Kostin, chief US equity strategist at Goldman Sachs, international investors will keep buying US stocks despite the recent market plunge and the deteriorating growth outlook for the American economy.

The bank forecasts that net foreign purchases of US stocks will total $300 billion in 2025. This is only slightly behind the $304 billion recorded in 2024.

According to experts, corporations will be the major buyers. At the same time, the largest sellers of US stocks are expected to be mutual funds, followed by pension funds, Kostin said.

This forecast was made amid investors' concerns about the implications of lower returns on US stocks compared to other regions. Over the year, the S&P 500 index has declined by 3%. Nevertheless, analysts at the organization believe that a weaker dollar will support foreign demand.

Ownership trends in equities also support this opinion. Foreign investors currently own 18% of US stocks, which is a record high. For comparison, in 2000, it was only 7%.