There was worrying news for equity investors in this week's US figures on cross-border capital flows.
In the past three months, foreigners bought $90.7bn (£45.1bn) of US stocks - close to a record. In the past, high confidence in US stocks has led to falling share prices globally. Since January 1996, the correlation between foreign buying and subsequent annual changes in the All-Share has been minus 0.51. So, if this relationship continues to hold, the All-Share could fall sharply in the next 12 months.
