Investors Flood $140 Billion into U.S. Stock Funds Following Trump's Election Victory

According to reports, investors have pumped nearly $140 billion into U.S. equity funds since last month's elections, amid claims that the Trump administration will deliver comprehensive tax cuts and reforms as a boon for corporate America.

According to EPFR, U.S. equity funds recorded an inflow of $139.5 billion since Trump’s victory on November 5. This buying wave made November the month with the highest inflows recorded since 2000. The new influx helped major U.S. equity indices reach a series of record levels, as investors shed concerns that policy proposals, such as broad increases in tariffs, could drive up inflation and threaten the Federal Reserve's plans for further interest rate cuts.

Dec Mullarkey, managing director at fund manager SLC Management, stated, "The growth agenda put forth by Trump is being fully embraced," adding that Trump’s selections for senior management positions are "quite market-friendly."

Funds investing in emerging markets experienced a net outflow of $8 billion, including about $4 billion that has exited China-focused funds since the election. According to EPFR, investors in Western Europe pulled out approximately $14 billion, while Japan-focused funds lost about $6 billion.

U.S. equities have consistently outperformed regions like Europe in recent years, largely due to the strength of the technology sector. However, the gap has widened since the election, with Bank of America analysts this week referring to this trend as the "American exceptionalism" trade. Mullarkey remarked, "When there's geopolitical risk in the world, the U.S. is a safe haven, ironically even if they are the cause of that geopolitical risk."