American exceptionalism, the idea that the American economy and its financial markets are distinct from those of other nations, remains alive, at least according to stock markets.
Since the slide in early April, the Wall Street Nasdaq index has jumped 31%, while the wider S&P 500 index has rallied at 24%, according to Data Source TradingView. Other major clues, such as the German Dax, the French CAC, the Nikkei of Japan and the composite of Chinese Shanghai, have lagged behind Wall Street.
The Nasdaq and the S&P 500 both exchanged records on Thursday. The request for American cash tickets resisted the concerns about budgetary sustainability, as Coindesk noted last month.
The data contradict the popular account that the capital flows rebalance far from the American mass due to the degree of the debt and the trade war of President Donald Trump and the repeated criticisms of the Federal Reserve.
“Several key factors that have underpinned the exceptionalism remains fully intact and may be further strengthened,” wrote Hani Redha, portfolio manager, head of strategy and research for global multi-active at Pinebridge Investments, in a blog article published last month.
Redha underlined the deregulation under Trump as a key factor supporting the United States productivity supercycle – unique among global peers – and its advance on a global scale.
The economy validates us exceptionalism
Other economic variables, such as real growth of GDP per capita, also support the account of exceptionalism. Metric measures the rate to which the value of goods and services produced per person in an economy is adjusted for inflation.
“The United States massively surpasses the EU in terms of real GDP growth per capita. The reasons for this are deeply structural and have not changed.
US data on jobs published Thursday added another participation in the account of the loss of American exceptionalism, as Bruce J Clark said, tariff manager at Informa Global Markets, on LinkedIn.
Implications for BTC and Dxy
The return of American exceptionalism to American actions can be considered a positive development for bitcoin
And the wider market of cryptography, given the historical positive correlation between the two.
BTC, the main cryptocurrency by market value, has already increased by 44% to $ 108,000, rallying quickly from $ 75,000 stockings in early April. In addition, with the Pro-Crypto President in the White House, it can be said that Bitcoin is part of the American exceptionalism game.
Meanwhile, the return of American exceptionalism could also place soil under the US dollar. “With the data on today’s jobs putting another participation in the account of the” loss of American exceptionalism “, the temptation to obtain long dollars here for a counter-stage trade is great and growing,” noted Clark, adding the growing discomfort of the officials of the ECB with Fort Euro.
At the beginning of this week, the FT reported, citing a senior ECB official, that the central bank may need to point out that too much reinforcement in the euro could be a problem, because it could lead the inflation to hover below the objectives. Meanwhile, in an interview with Bloomberg, the vice-president of the ECB, Luis de Guindos, said that the “overtaking” of the euro should be avoided, signaling the levels above 1.20 as complicated.
