It’s Messy Everywhere. But the U.S. Still Leads the Pack.
If you’re a high-earning professional watching the headlines—China’s property crisis, Europe’s stagnation, political gridlock in the U.S.—you might feel like nowhere is safe to invest. Global markets look like a pile of laundry that’s been sitting too long in the washer. But if you had to pick a shirt to wear, wouldn’t you reach for the cleanest one?
That’s the U.S. stock market right now.
It’s not spotless. Inflation, interest rates, and economic uncertainty are very real. But compared to Europe’s energy struggles, China’s shaky real estate sector, and India’s growing pains, the U.S. remains the most resilient and reliable place to build long-term wealth.
And if you ask global investors where they put their money when the world feels unstable—the answer is overwhelmingly America.
In this article, we’ll explore why the U.S. is still the best game in town for long-term investors, how it stacks up against other global regions, and what you should do now if you’re looking to position your portfolio wisely for the next 10+ years.
Global Growth Looks Uneven—Here’s What the Numbers Show
The International Monetary Fund projects global GDP to grow just 2.8% in 2025—well below the historical average. And it’s not evenly distributed:
- U.S.: 1.8% projected GDP growth in 2025 (IMF)
- Euro Area: 0.8% growth (IMF)
- China: 4.0% growth—but declining productivity, youth unemployment, and rising geopolitical risk
- India: 6.2% growth—but with limited market access and high regulatory friction
Capital Still Flows Toward the U.S.
Despite all of this, global investors continue to favor the U.S. equity market:
- According to Morningstar, U.S. equities still make up over 60% of global stock market capitalization.
- A 2024 Goldman Sachs report noted that U.S. equities remain “structurally favored” due to stronger earnings growth, innovation leadership, and investor protections.
As economist Jason Furman put it: “The U.S. economy continues to outperform expectations—not because it’s perfect, but because it’s better than the alternatives.”
Why the U.S. Still Leads—Even When It’s Struggling
Let’s be honest—things don’t feel amazing domestically. Inflation has been sticky. The Fed’s rate hikes have cooled some sectors. Tech has gone through layoffs. But when you zoom out, the U.S. still holds four structural advantages that matter:
1. World-Class Companies
Apple, Microsoft, Nvidia, Amazon, Google, Tesla—what do global investors buy when they want quality, innovation, and scale? U.S. firms. These companies don’t just drive American markets—they are the global economy in many ways.
Even international funds often hold more U.S. stocks than local ones. Ask a German investor what they own, and odds are high it includes American tech.
2. Rule of Law and Transparency
The U.S. financial system has flaws, but it’s still far more transparent than what you’ll find in China or India. Auditing standards, shareholder protections, legal recourse—all tilt in favor of investors here.
3. Reserve Currency Status
The U.S. dollar remains the global reserve currency. That keeps capital flowing in during times of crisis—and gives the U.S. a structural advantage most countries can’t replicate.
4. Depth of Capital Markets
There’s simply more investment choice and liquidity in the U.S. The bond market is deeper. The equity market is broader. And investors have better access to everything from real estate investment trusts to venture-backed IPOs.
What Should You Do as an Investor?
If you’re accumulating wealth—whether through your income, business, or equity compensation—the key is to stay globally aware but U.S.-centered.
Here’s how:
1. Keep Your Core in U.S. Equities
This doesn’t mean ignore international markets—but it does mean your foundation should be built on strong, reliable ground. For most professionals, that means:
- Allocating 60–80% of equity exposure to U.S. large-cap and mid-cap stocks
- Owning leading sectors like technology, healthcare, and industrials
- Reinvesting dividends and staying long through short-term volatility
2. Add Global Exposure Strategically
You can still benefit from global growth—but be selective. Consider:
- Developed markets (Japan, Switzerland) with stable governance
- Emerging market funds with U.S. oversight
- Multinationals with non-U.S. revenue, giving you global exposure through U.S. companies
3. Avoid Overreacting to Headlines
It’s tempting to make sudden moves when headlines get loud. But ask yourself—has your time horizon changed? Has your strategy changed? If not, then neither should your portfolio.
Nick Murray reminds us: “The key to investing is temperament, not intelligence.”
Your success depends less on predicting markets and more on sticking with a plan while others panic.
FAQs
Why is the U.S. still considered the best market to invest in?
Because it combines scale, stability, innovation, and liquidity. Even during downturns, the U.S. economy is more transparent and accessible than many global counterparts.
Should I increase my international exposure?
Possibly—but only as a complement. International investing adds diversification, but the U.S. should remain your core unless you have a unique risk profile or investment mandate.
What risks does the U.S. market face?
Inflation, interest rate volatility, political dysfunction—but these are largely priced in. The bigger risk is overreacting to short-term noise and abandoning long-term positions.
Is it better to invest in U.S.-based global companies instead of international stocks?
For many investors, yes. Companies like Apple or McDonald’s get over 50% of revenue internationally—but with the regulatory and legal protection of being U.S.-based.
Are other countries catching up?
Yes—but slowly. India, for example, is a long-term growth story, but still lacks the infrastructure and market depth of the U.S. China’s geopolitical risk makes it unpredictable. Europe is stuck in low growth and aging demographics.
The Bottom Line: Cleanest Dirty Shirt Still Wins
No market is perfect. But in a world filled with uncertainty, the U.S. market remains the most resilient, transparent, and opportunity-rich landscape for long-term investors.
At Truly Aligned, we don’t chase hype or guess at trends. We build globally-aware strategies that help high-income professionals grow wealth through all seasons. If you’re wondering how to position your portfolio for what’s next—while staying grounded in what works—we’re here to help.
Sources:
https://www.reuters.com/business/aerospace-defense/imf-slashes-global-outlook-white-house-says-trade-talks-pick-up-pace-2025-04-22/
https://www.reuters.com/business/imf-cuts-growth-forecasts-most-countries-wake-century-high-us-tariffs-2025-04-22/
https://www.reuters.com/markets/europe/imf-cuts-euro-zone-growth-forecast-amid-tariff-uncertainty-2025-04-22/
https://www.imf.org/en/Countries/CHN
https://pib.gov.in/PressReleasePage.aspx?PRID=2123826
Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Mid-capitalization companies are subject to higher volatility than those of large-capitalized companies.
Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through The Wealth Consulting group, a registered investment advisor. The Wealth Consulting group, WCG Wealth Advisors and Truly Aligned, INC are separate entities from LPL Financial.