U.S. clout waning in bull run

NEW YORK – Across the world’s economic capitals, from Shanghai to New York, stock markets are trading at record high levels as investors scarf up equities with an enthusiasm not seen since the late 1990s.

The run on stocks has been anchored by a streak of takeover deals, thriving corporate earnings and an unprecedented amount of share buybacks – a very different scenario from the frenzied buying of tech stocks a decade ago. Investors also are buying because there’s plenty of available capital thanks to relatively low interest rates and inflation levels that remain largely in check.

But there’s a twist: The U.S., once the leader in the global stock market, has bowed to catalysts abroad that are sustaining the bull run.

The Standard & Poor’s 500 reached a new closing high of 1,536.34 Friday, and the Dow Jones industrials also set another closing record. The two indexes have been thriving so this year, but have failed to reach the double-digit percentage gains in many markets abroad.

Overseas expansion has been enough to keep financial markets rolling along. With the U.S. economy slowing but not collapsing, investors have been encouraged by robust overseas economic and business conditions.

Credit is also abundant – and has helped fund this acquisition spree – thanks to low interest rates and a global liquidity boom.