Source: Fortune
Summary
Morgan Stanley’s Chief Investment Officer Lisa Shalett says the US’s economic exceptionalism, fueled by monetary and fiscal stimulus and imported disinflation from China, is being replicated by other countries. As global trade routes are reestablished, nations are leveraging their own economic firepower, increasing defense spending, and seeking bilateral trade agreements. Shalett believes this shift will lead to a more globally balanced portfolio and is a multi-year phenomenon worth investing in.
Our Reading
The numbers tell one story. The US’s economic exceptionalism is being rewritten by other countries. Morgan Stanley’s Lisa Shalett notes that nations are now leveraging their own economic firepower, increasing defense spending, and seeking bilateral trade agreements. The world is becoming multipolar, and China is exporting disinflation to the rest of the world. As a result, countries are reassessing their economic formulas, and a more globally balanced portfolio is becoming increasingly attractive.
When everyone has a strong hand, the game changes.
Author: Evan Null
