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
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.