The “Sell America’” trade seems to have run its course
The “Sell America’” trade seems to have run its course four months after the start of an alarming and correlated selloff in US stocks, bonds and the dollar.
Equities have climbed back to all-time highs, and the bond and currency markets have stabilized.
The reality is that America’s economy is generally muddling through, expanding just enough to keep the recession fears at bay yet far from its performance the last couple of years when it was widely regarded as “the envy of the world.”
Consider it a downshift from “American exceptionalism” to “American mediocrity.”
The Dollar is down about 7.9% on the year.
To be clear, this isn’t the disaster scenario in which the world suddenly and broadly turns its back on American assets.
The data show that overseas flows have been largely positive since the “Liberation Day” tariff announcement that initially shocked financial markets.
Jonathan Levin Bloomberg 21 August 2025
Is This How American Exceptionalism Ends?
mars 31, 2025
https://englundmacro.blogspot.com/2025/03/is-this-how-american-exceptionalism-ends.html
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