The return of US exceptionalism

Since the pandemic, the US has outperformed other major economies, with fiscal stimulus resulting in productivity gains. Large government spending boosted consumption, investment, and jobs, reinforcing the narrative of “US exceptionalism.” However, by the end of 2024, trade tensions, policy changes, and governance concerns began to shift this dominance and reduce investor confidence. Other countries, including China and Germany, are implementing strategies to boost their appeal to investors. Despite the macroeconomic challenges and uncertainty facing US equities, it is not the time to step...