Why does the world's money always end up flowing into U.S. stocks?

Take a look at the list of the world's largest companies by market capitalization, and you'll find:

Most of the enterprises that truly control global profits, technology, brands, and capital pricing power are listed in the United States.

What you're buying isn't just the word "America,"

but rather:

- AI computing power

- Cloud computing

- Operating systems

- The global advertising system

- High-end consumer brands

- Financial and technological infrastructure

Currently, the world's most profitable business models are still highly concentrated in U.S. stocks.

Therefore, in the long run,

investing in U.S. stock index funds is essentially investing in the world's core assets.

But don't mythologize U.S. stocks either.

In 1989, Japan

also dominated the global market cap rankings.

What ultimately determines returns

is never just "national strength,"

but rather:

valuation, cycles, liquidity, and earnings growth.

U.S. stocks are worth allocating to in the long term,

but any market,

after rising to extremes,

can experience bubbles and mean reversion.