Net foreign purchases of U.S. securities soared to nearly $70 billion last October, a record monthly pace, according to Joseph Quinlan, senior international economist at Morgan Stanley. The net foreign purchases consisted of $7.2 billion in equities, $20.3 billion in corporate bonds, $15 billion in Treasuries and $27.3 billion in government agency securities.
"All totaled, net U.S. portfolio inflows in October were the highest on record in our 24-year monthly series, representing a powerful, near-term vote of confidence for the U.S. among foreign investors, he wrote. Even in September, net foreign purchases totaled $5.3 billion.
"Rather than cripple net inflows, Sept. 11 and more importantly the events that have transpired in its aftermath have galvanized foreign investors confidence in the U.S., Mr. Quinlan wrote in his January report to clients. "Globally, in other words, the U.S. remains the best play around.