Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Wednesday, July 30
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Stock Market»Look to the U.S. for economic resilience and continued global stock market leadership – NBC Chicago
    Stock Market

    Look to the U.S. for economic resilience and continued global stock market leadership – NBC Chicago

    July 13, 20244 Mins Read


    Americans have often been accused, especially by those living abroad, of having a rather narrow view of the world.

    Americans’ preference for the U.S. also extends to investing, where they have a homeward bias and a reluctance to snap up foreign investments.

    Despite what many pundits say about diversifying away from the U.S., Wall Street has been the best place to be for traders and investors for several years in a row.

    The S&P 500 is up nearly 18% in 2024, while the Nasdaq Composite is up 22% in that same time frame.

    Few other major markets are close.

    Japan, after three decades of notable underperformance, has been one of the exceptions. The NIkkei 225 index is up 23% so far in 2024.

    There have also been sizable gains in Argentina and Turkey, but both suffer surging inflation and volatile currencies, making investing in each less attractive than their year-to-date returns suggest.

    And then there’s China. The Shanghai Composite is down for the year despite several bullish calls made by international strategists.

    But the bulls are stuck in a China shop that has myriad economic problems, ranging from a still-flailing property market to soft domestic consumption, to political and economic policies that are causing China’s trading partners to slap tariffs on their exports.

    It’s true that China is taking the lead in the production of electric vehicles and solar panels, and it’s also true that exports have been rising even as tariffs are applied to Chinese goods.

    But President Xi Jinping’s “party over prosperity” political model continues to dampen enthusiasm among both foreign investors and domestic consumers.

    Of course, the U.S. has its problems.

    This is an unprecedented U.S. presidential election in ways too many to mention in a commentary about trading and investing.

    But our economy has been not only rock solid but also the envy of the world.

    Even as the U.S. economy appears to be slowing and unemployment is edging up, inflation also continues to come down. All of these are factors that could lead to a reduction in interest rates.

    Rate cuts could extend the stock market’s rally and power the economy’s recovery.

    Depending on the policies of the next presidential administration and the composition of Congress in 2025, that could all change.

    But we won’t even have a hint of what’s next for the U.S. until Election Day on Nov. 5.

    It’s also true that our nation’s deficits and debts are unsustainably large.

    But bond market investors have yet to shrug, knowing that China, Japan, Italy, Spain and other nations have bigger fiscal issues than the U.S.

    China’s total debt-to-GDP ratio in 2023 was estimated to be 288%, according to the National Institution for Finance and Development. That’s compared to the U.S.’s ratio of 123% in 2023. Japan’s debt-to-GDP ratio stands at 255% in 2024, per the International Monetary Fund.

    Overseas investors continue to buy U.S. bonds as a result of that differential, not to mention that decent yields offered by U.S. Treasurys and the possibility of capital gains if rates were to come down noticeably. Indeed, bond prices rise as rates come down, which offers an opportunity for capital appreciation.

    Add to this the continued strength of the U.S. dollar, which has remained stable even amid concerns that it could be supplanted as the world’s currency.

    So far, all the handwringing about America’s standing in the world, whether made by outsiders or by some here at home, has cost investors money if they paid heed to the call for impending doom.

    The financial markets are not remotely suggesting that America is in decline – far from it.

    There may be a day that that becomes true and other economies and markets may prove more alluring, but that day has yet to come.

    To those who continue to push U.S. investors to diversify into global markets, developed or emerging, it’s good to remember the timeless words uttered by Dorothy Gale of Kansas: “There’s no place like home.”

    — CNBC contributor Ron Insana is CEO of iFi.AI, an artificial intelligence fintech firm.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleWomen worry more than men about outliving their retirement savings. Should they?
    Next Article Sen. Cynthia Lummis praises Bitcoin, calls CBDCs ‘the beast’

    Related Posts

    Stock Market

    Stock market today: Nifty50 opens flat; BSE Sensex near 81,400 as worries of US tariffs on India loom

    July 29, 2025
    Stock Market

    Stock Market LIVE Updates: Nifty above 24,850, Sensex up 170 pts; L&T, NTPC, Sun Pharma top gainers

    July 29, 2025
    Stock Market

    Samsung stock climbs after $16.5B Tesla AI chip deal. Will it last?

    July 29, 2025
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Finance

    How Tim Walz’s finances stack up to the average American

    August 16, 2024
    Investing

    Meta platforms CEO Zuckerberg sells over $2.5 million in stock By Investing.com

    August 6, 2024
    Commodities

    Aelea Commodities IPO allotment to be finalised today: How to check status? A step-by-step guide

    July 18, 2024
    What's Hot

    Why HNW Investors Should Look At Whisky As Passion Commodity

    July 16, 2024

    Une prise de contrôle de Bitcoin ‘Spam’! Le stockage de données a dépassé le cas d’utilisation de «l’argent» au cours de la dernière année

    May 22, 2025

    1 Wall Street Analyst Thinks Meta Platforms Stock Is Going to $550. Is It a Buy?

    July 21, 2024
    Most Popular

    The surprising northern UK city where property prices are soaring | UK | News

    June 28, 2025

    Stock market today: Wall Street edges lower despite solid data on the economy

    March 19, 2025

    sur quelle plateforme investir ?

    May 31, 2025
    Editor's Picks

    Reminder to Call 811 Before Digging to Avoid Utility Line Hazards – WHIZ

    August 7, 2024

    XRP: Mini Death Cross Surprise, Shiba Inu (Shib): Ce n’est pas normal, Bitcoin (BTC): Breakout fondamental sécurisé

    July 5, 2025

    Ether is set to gain ground on bitcoin with charts indicating 20% upside from here

    October 30, 2024
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.