Foreign investors have purchased a record $646.8 billion in US equities over the 12 months ending September 2025, marking a 66% increase from the previous peak in 2021, according to Yardeni Research. This surge in foreign investment highlights a significant shift in global capital flows, with private investors also acquiring $492.7 billion in US Treasuries during the same period. The persistent demand for US assets reflects a broader realignment in global financial markets. Domestic investors have also shown increased risk appetite, contributing $900 billion to equity funds since November 2024, with $450 billion of that in the last five months alone. However, this optimism contrasts with rising US consumer debt, which reached a record $1.233 trillion in Q3 2025. As markets anticipate further growth, JP Morgan projects the S&P 500 could reach 8,000 next year, buoyed by seasonal trends and strong capital inflows. The interplay between these factors will be crucial in shaping market dynamics moving into 2026.