Foreign interest in U.S. securities has been sparse and sporadic since mid-2011, as shown on the graph below. Data released today shows another monthly drop in foreign purchase of U.S. securities.
Inasmuch as "demand for domestic securities and currency demand are directly linked because foreigners must buy the domestic currency to purchase the nation's securities," one has to wonder how much longer the U.S. economy can continue to "recover" and at what pace without increased foreign interest…particularly as the SPX faces this potential scenario.



