US exceptionalism under pressure, but far from over
While short-term sentiment towards American assets has soured amid economic uncertainty, the long-term foundations of its economy and markets remain intact
US EXCEPTIONALISM – the belief that the US economy and financial markets are uniquely positioned to outperform other global markets over the long run – has come under intense scrutiny this year.
US President Donald Trump’s disruption of global trade through erratic policies and aggressive tariffs, his attacks on universities, and growing concerns over rising fiscal deficits should the One Big Beautiful Bill Act be passed have all contributed to outflows from US equity markets in recent months.
To put the current scepticism into perspective, it is worth considering how US markets have performed over the longer term. Over the past two decades, the S&P 500 has delivered total returns of approximately 643 per cent, significantly outperforming other major indices including MSCI China (388 per cent), the Straits Times Index (355 per cent), Stoxx Europe 600 (290 per cent), and the Nikkei 225 (266 per cent), as at Jun 13, 2025.
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