The resilient rudder

Feb 20, 2020 | Jay Zhang


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The U.S. expansion continues to plow ahead, and investors are finding solace in its resiliency as growth elsewhere underwhelms.

RBCDS-swimming pool

Investors around the world are increasingly thinking of the U.S. as a “safe haven,” and not just the Treasury market, which has long been referred to this way. According to RBC Capital Markets, the U.S. economy as a whole is now perceived as having “safe-haven” characteristics—and, importantly, this positive sentiment is spilling into the stock market as well. While easing concerns about the spread of the coronavirus (COVID-19) outside of China have helped lift the S&P 500 to new all-time highs lately, we think this notion of domestic economic resilience has played an even greater role in boosting the market. The S&P 500 has rallied 4.4 percent so far this year, while other markets have collectively slipped 0.3 percent, as measured by the FTSE All-World ex-U.S. Index.

 

 

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