It’s America First for Markets, But Not for Long

To get John Authers' newsletter delivered directly to your inbox, sign up here.

It is time for the investment regime to change. That is what happens after a major international financial crisis, and we certainly had one of those earlier this year. We also have a remarkably strong and persistent ancien regime, which has lasted ever since the last crisis and is in need of change. Rates and inflation have been low, inequality has grown, and American assets have massively and consistently outperformed the rest of the world. This chart from London’s Absolute Strategy Research, Ltd., makes clear how strong the current regime is, and how prior recessions led to new regimes: