Why the Us Exceptionalism Trade Is Faltering
The anticipated outperformance of U.S. stocks and the dollar under President Trump's policies is being challenged by weakening consumer and business indicators, signaling increased caution among investors. As the S&P 500 shows only modest gains compared to global indices, concerns over domestic economic growth and international competition, particularly in technology, have intensified. This shift may indicate a long-term reevaluation of the U.S. economy's exceptionalism narrative, particularly as international assets become more attractive.
- The growing divergence in economic performance between the U.S. and other regions highlights the vulnerability of the U.S. market to external shocks, suggesting a potential shift in investment strategies and priorities among global investors.
- What strategies should investors consider to navigate the uncertainties in the U.S. economy while capitalizing on emerging opportunities abroad?