From Investing.com: 2025-01-19 06:00:00

Wells Fargo Investment Institute maintains a positive outlook on US economic growth and market performance, citing pandemic-era tax cuts and government spending as key factors. US firms are seen as more innovative and efficient than international counterparts, with higher return on invested capital. Structural supports like innovation and proactive policies further strengthen the economy.

The US dollar’s role in global trade and finance attracts overseas financing and investment. Despite China’s dynamic tech sector, it faces hindrances like a quasi-market system and structural challenges. Wells Fargo believes US exceptionalism will persist, overshadowing growth headwinds in Europe and China. Trade and immigration risks may be offset by growth-enhancing tax cuts and deregulation.

US exceptionalism is supported by institutional strengths in financial-market liquidity and high-tech innovation. Wells Fargo recommends a continued preference for the US market, with a focus on Information Technology and Communication Services sectors for long-term outperformance. Increasing international exposure through US multinationals in Energy, Materials, and Industrials is also advised.



Read more at Investing.com: How exceptional is US exceptionalism? By Investing.com