Posted 12/13/2023, 1:30:00 PM
U.S. Economy Lauded for Resilience But Faces Debt and Policy Risks to Continued Dominance
- The report discusses the U.S. economy's resilience and ability to adapt, but warns of potential risks to growth
- It highlights factors driving "Economic Exceptionalism" like innovation, flexible labor, and responsive policy
- U.S. equities are expected to continue outperforming due to valuation expansion, profitability, and currency/liquidity advantages
- However, debt levels and impaired ability to respond to shocks pose economic risks
- While a recession seems less likely, challenges like market valuation and interest rates could displace U.S. dominance