The US Economy's American Exceptionalism Trade Died Awfully Fast
The prospect of "American exceptionalism" has been dealt a significant blow as the US stock market lags behind other developed economies, with the S&P 500 dropping over 3% since Trump took office. The economic data suggests that US businesses are struggling under Trump's trade war and other policies, with retail spending falling sharply, hiring slowing down, and consumer confidence plummeting. The investor outlook has become increasingly cautious, with some forecasts predicting a decline in economic growth.
- The rapid collapse of the "American exceptionalism" trade serves as a stark reminder that market sentiment can quickly turn against even the most seemingly robust fundamentals, highlighting the importance of remaining vigilant in investment decisions.
- What are the implications for investors who had bet big on Trump's policies and how will they navigate this shift in market sentiment?