Bloomberg Surveillance US Exceptionalism amid Moves in Dollar and Treasuries
Apr 16, 2025
Wei Li, Global Chief Investment Strategist at BlackRock, discusses the evolving landscape of U.S. exceptionalism and risks in the financial sector. Dan Ives, from Wedbush Securities, shares insights on the impact of new Nvidia chip restrictions and their effects on tech stocks. Rebecca Patterson, former Chief Investment Strategist at Bridgewater Associates, analyzes shifts in U.S. Treasuries and the declining demand for the dollar. Together, they explore the intricate dynamics of the U.S.-China economic relationship and market volatility.
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Invest Using Scenario Analysis
- Approach investing through multiple scenarios rather than point forecasts due to elevated policy and economic uncertainty.
- Watching negotiation rules and constraints helps better predict economic outcomes than daily political rhetoric.
US Exceptionalism Persists
- The recent outflow from US assets reflects overstretched positioning and valuation gaps, not an end to US exceptionalism.
- US advantages like deep capital markets and energy independence sustain its exceptionalism despite volatility.
Trade Pressures Are Negotiation Tactics
- Both US and China escalate low-level actions to pressure each other before negotiations.
- Individual incidents should be viewed as tactical moves, not definitive shifts in policy.