AsianFin -- Global equity funds focused on markets outside the United States saw their largest inflow in over four and a half years this July. Investors moved a massive $13.6 billion into these funds, marking a significant redirection of capital away from the U.S. market.

The shift is driven by growing concerns over the U.S. economy, a weakening dollar, and what many see as overstretched stock valuations. The trend began earlier this year, fueled by President Donald Trump's economic policies, but intensified in July. According to LSEG Lipper, this marked the third consecutive month of outflows for U.S.-focused equity funds, which saw $6.3 billion in redemptions.

This sustained redirection of capital suggests a long-term strategy of diversification, with Europe and emerging markets benefiting from easier monetary conditions and stronger growth forecasts.