U.S. Economy and Markets Outperform Peers, Defying Odds amid Global Tumult
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The U.S. economy has significantly outperformed other developed economies since the COVID pandemic, defying expectations of a recession. Key reasons include a massive fiscal response, insulation from rising interest rates, and energy independence.
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U.S. stocks have also trounced peers, with the S&P 500 up over 50% since early 2020 compared to more modest or negative gains in Europe, Japan, and China.
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Factors like U.S. dominance in capital markets, tech innovation, new business formation, and strong productivity growth may also explain exceptional economic performance.
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It's uncertain whether exceptionalism will continue due to unpredictable political and macro risks. 2024 elections create uncertainty around future policy trajectory.
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However, the U.S. economy and markets have shown resilience through trying times. Relative outlook still fairly positive compared to developed market peers.