Core Viewpoint - The article discusses the current trends in foreign investment in the U.S. stock market, highlighting a significant outflow of capital from regions like China, Hong Kong, and Singapore, amidst concerns over economic conditions and Federal Reserve policies [3][5][7]. Group 1: Foreign Investment Trends - In Q2 2025, foreign investors had a net sell-off of approximately $80 billion in the U.S. stock market, indicating a clear trend of capital outflow from regions such as China, Hong Kong, and Singapore [3]. - China's net outward foreign direct investment was about $170 billion in 2024, while foreign direct investment inflows were steadily recovering, suggesting that global capital flows are not completely collapsing but external risks are accumulating [7]. Group 2: Economic Indicators and Federal Reserve Policies - The Federal Reserve's dot plot from June 2025 indicates that there is still a strong likelihood of at least one or two more interest rate hikes, which may deter foreign capital from returning to the U.S. market [5]. - In June 2025, the UK's CPI annual rate reached 7.9%, and Germany's industrial output fell by 0.5% year-on-year, reflecting broader economic challenges in Europe [5]. Group 3: Market Valuations and Risks - The price-to-earnings ratio for the S&P 500 technology sector has surged to nearly 28 times, raising concerns about overvaluation [9]. - In June 2025, new housing starts in the U.S. decreased by 12% year-on-year, and mortgage applications continued to decline, indicating weakness in the real estate market [9]. Group 4: Investment Sentiment and Future Outlook - The article suggests that any potential capital inflow from foreign investors may be cautious and gradual, rather than a full-scale recovery, as indicated by Singapore's sovereign wealth fund's slight increase in U.S. equity allocation, which has not yet returned to pre-pandemic levels [11]. - The inverted yield curve in the U.S. bond market persists, with short-term yields remaining high, signaling that risk appetite among investors is still contracting [11].