US Markets Are Trailing the World as Aura of America First Fades
Across financial markets, America is no longer first; investors are shifting their focus to other regions and assets. The once-unstoppable S&P 500 Index has logged one of its worst weeks of underperformance relative to the rest of the world this century, and the US share of world market capitalization has slipped since peaking above 50% early this year. A growing chorus of bearish voices is predicting that the dollar will continue to weaken and Treasury yields will tumble.
- The shift away from US assets may be a sign that investors are reevaluating the notion of "America First" in global markets, potentially leading to a more multipolar economic landscape.
- As investors begin to question America's dominance, what implications might this have for US foreign policy and its ability to shape international agendas?