Cracks in U.S. Exceptionalism? Rethinking Global Asset Correlations

In this timely report, Neuberger Berman’s Laura Fried dissects recent market anomalies to uncover the true drivers behind perplexing asset class correlations and shifting global capital flows.

Key Insights:

• Synchronized Sell-Off: April’s drop in U.S. stocks, Treasuries, and the dollar defied crisis norms—signaling a deeper reassessment of U.S. economic leadership.

• Misread Narratives: Contrary to popular belief, data shows no significant foreign government selling or hedge fund basis trade unwinds.

• Real Driver Identified: Private foreign investors began reducing U.S. equity and Treasury exposure as early as January, triggered by China’s AI breakthrough and Germany’s fiscal pivot.

Access the full report to understand why today’s correlations might signal tomorrow’s regime shift—and how to position for it.