Has ‘US exceptionalism’ peaked? Consider exposure via non-US companies with US businesses
Uncertainty over American policies threatens to spark a negative cycle that could materially dent business and consumer confidence
THE concept of US exceptionalism in finance – that the US market is distinctive and delivers higher returns than elsewhere – is not new. Data from the UBS Global Investment Returns Yearbook 2025 shows the US stock market has generated significantly higher returns than anywhere else over the past 125 years.
Historically, the opportunity cost of bypassing the US was painfully high.
Analysis by the Yearbook’s authors – London Business School academics Elroy Dimson, Paul Marsh and Mike Staunton (DMS) – found that US$1 invested in US stocks in 1900 would have grown to US$2,911 by end-2024, an annualised return of 6.6 per cent. In contrast, US$1 invested in the rest of the world (ex-US) would have grown to just US$194 or 4.3 per cent annualised.
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