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The Overemphasis on US Exceptionalism


Apr 3, 2024

The United States economy has been surpassing other G-10 economies in terms of growth over the past year, and this trend appears likely to continue. However, when examining this perceived American exceptionalism from an economic perspective, it is important to note that this is a relatively recent development. The true standout feature of the US economy lies in its stock market performance.

As we move further into 2024, the strong performance of both the US economy and US equities remains at the forefront. In a global context where the positive impact of increased household wealth on economic growth is evident, the rising value of financial assets and the overall strength of the economy create a mutually beneficial cycle. After witnessing 15 years of US equity outperformance, the question arises as to whether there are unique and enduring qualities in the US that can sustain this momentum. One potential factor is the substantial US leverage in the technology sector, although this also presents risks.

In conclusion, the current success of the US economy and stock market is a recent but notable trajectory that has been fueled by various factors such as wealth effects and sector-specific strengths. The ability of the US to maintain this positive trend in the long term remains uncertain, with potential challenges and advantages lying ahead as the country navigates through economic cycles.

By editor

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