U.S. News

2244 readers

53 users here now

News about and pertaining to the United States and its people.

Please read what's functionally the mission statement before posting for the first time. We have a narrower definition of news than you might be accustomed to.

Guidelines for submissions:

Post the original source of information as the link.
If there is any Nazi imagery in the linked story, mark your post NSFW.
If there is a paywall, provide an archive link in the body.
Post using the original headline; edits for clarity (as in providing crucial info a clickbait hed omits) are fine.
Social media is not a news source.

For World News, see the News community.

This community's icon was made by Aaron Schneider, under the CC-BY-NC-SA 4.0 license.

founded 1 year ago

MODERATORS

[email protected]

Under Biden, U.S. economic growth becomes the ‘envy of the world’ (www.msnbc.com)

submitted 5 months ago by [email protected] to c/[email protected]

46 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 4 points 5 months ago

It's not that the US economy is better than others, it is just trusted to be the default place for people to invest their excess money which has resulted in most of the US stock market being overvalued compared to the rest of the world.

"U.S. stocks' outperformance on average over the past half-century or so has simply been due to increasing price multiples, not an improvement in business fundamentals. That is, U.S. companies did not generate more profit than international companies; their stocks just got more expensive. [...] Cheap stocks have greater expected returns and expensive stocks have lower expected returns."

https://www.optimizedportfolio.com/international-stocks/