Silk Summary:
As democrats predict doom and gloom, once again, America is coming back with defiance and strength.
‘US exceptionalism roars back’ as markets defy doomsayers and draw record foreign inflows after panic over Trump tariffs
By Jason Ma-Fortune
“Foreign investors returned to U.S. stocks and bonds in force in May, just a month after retreating in the wake of President Donald Trump’s unexpectedly aggressive tariffs. New data show record net inflows, as the highest tariff rates were on hold to allow breathing room for trade talks. U.S. stocks have since retaken record highs, though bond yields remain elevated.
The most recent data from the Treasury Department shows that foreigners plowed a net $311.1 billion into U.S. securities in May, a record high, after pulling out $14.2 billion in April.
“All this is notable because so many commentators prophesied the end of US ‘exceptionalism’ after the turbulence of recent months,” Robin Brooks, a senior fellow at the Brookings Institution, wrote Wednesday in a post titled “US exceptionalism roars back” on his Substack. “The reality is that markets are far more accepting of all the ups and downs than people realize. US ‘exceptionalism’ is alive and well.”
Meanwhile, for the 12 months through May, net foreign inflows neared their all-time high from July 2023, when they topped $1.4 trillion to mark the peak of the American exceptionalism narrative in markets, he added.
The rebound in May signals a stunning turnaround from April, as Wall Street feared the end of U.S. supremacy in the global economy and markets.
In the immediate aftermath of “Liberation Day,” the S&P 500 flirted with a bear market, crashing nearly 20% from its prior high while the Nasdaq passed that threshold.
The 10-year Treasury yield initially plunged but then soared more than 70 basis points in just days as investors worried top U.S. debt holders would dump their holdings.
But a month later, the opposite happened.”
With new trade deals with Japan who will invest the most in US it has ever done, and a new deal made this weekend with the EU, America is on record to do something it has never been able to do, no major trade deficits in the future and record collections in customs and excise taxes!
Now, it’s just sit and wait, while the down and dirty democRATS think of something diabolical, they made up to throw into our healing country!
