While the rally in companies from Apple to Exxon has expanded America’s share of global market value since the bull market began in 2009, the proportion is down from 10 years ago. The 36 percent stake compares with 29 percent in 2010 and 46 percent in 2003, data compiled by Bloomberg show.
“There is a long-term trend that investors are moving money to non-U.S.” stocks, Pearl said by phone on Sept. 3. “U.S. citizens have traditionally put all their money in the U.S. and they really need to allocate more evenly.”
Stock buybacks and a flood of takeovers have bolstered equity gains. Mergers and acquisitions have exceeded $1.3 trillion, on course for the busiest year since 2007, data compiled by Bloomberg show. Chief executive officers from S&P 500 companies spent $283 billion on their own stock from January to June, up 30 percent from a year earlier, according to S&P Dow Jones Indices.
That investors are unconvinced gains will last bodes well because it means a pool of money still exists to bid shares up, said Mark Freeman, who oversees about $20 billion as chief investment officer at Westwood Holdings Group Inc.
“Investors are still showing some level of skepticism about what the future looks like,” Freeman said in a phone interview on Sept. 4 from Dallas. “It’s a counter indicator to those who’re saying we’re close to market tops.”