Is this the death of US exceptionalism — or the dawn of a new era for markets?
Oaktree's Howard Marks says that despite its current turmoil, America is still the best place to deploy capital. Some of his market compatriots are less sure.
Are we witnessing the end of American exceptionalism? It's a question being widely debated as the world's largest economy undergoes one of the most tumultuous periods in its volatile history. If the perspective of heavyweight American investors is anything to go by, then the jury is still very much out.
The topic permeated the macro-heavy Morgan Stanley Australia Summit this week, as analysts and capital allocators debated whether the Trump administration was signalling the end of America’s long-running dominance of geo-politics and markets.
Established contrarian Howard Marks, whose Oaktree Capital Management oversees $US203 billion ($311 billion) in alternative assets, conceded that while the US may have ceded some of its lead, it remains the “the best single destination for money in the world”.
“Some people may conclude that we are less dependable and less deserving of the 'Golden Credit Card' than in the past – and I can't argue against that,” Marks said, referring to America’s ability to eye watering deficits and national debt.
