41% [1] of S&P500 companies' (~Top 500 US stocks index which for example doesn't include TSMC, as it's only for US-listed companies) revenue comes from outside of the US. So really, people are buying into global companies when they're buying the S&P500.
I think you're conflating between 2 different things: the USD and US stocks from US companies.
- The USD is definitely losing value. That also means stocks from US companies would be cheaper from a foreigner's point of view.
- That means it represents good investment opportunity as long as the fundamentals of those companies are not affected too much (e.g. AI companies not directly affected by workers' raid, or pay tarrifs). Nothing is contradictory here.
> - The USD is definitely losing value. That also means stocks from US companies would be cheaper from a foreigner's point of view.
That's actually not quite right. You can only buy securities on US markets with US dollars. You'd have to buy dollars on the money market to make that trade. So to the extent that "cheaper dollars" are driving investment in dollar-valued securities, they're increasing the value of the dollar on the global market by the same amount.
All markets seek toward efficiency. The situation you posit would be subject to a money-printing arbitrage loop if it actually existed.
I keep seeing this but then I also keep seeing the opposite: https://finance.yahoo.com/news/foreigners-buying-us-stocks-r...