Schwab Strategist Defends US Market Edge With 60% Global Equity Share and Dollar Dominance
Updated
Updated · Financial Times · Jul 3
Schwab Strategist Defends US Market Edge With 60% Global Equity Share and Dollar Dominance
1 articles · Updated · Financial Times · Jul 3
Summary
US market exceptionalism still holds, Charles Schwab’s chief investment strategist argued, saying capital keeps flowing to New York despite renewed worries over deficits, debt and de-dollarisation.
Roughly 60% of global equity market value sits in the US, while Treasuries remain the deepest liquid haven, giving large investors a scale and exit flexibility that Europe’s fragmented bond markets and China’s capital-controlled system cannot match.
The dollar’s lead is reinforced by network effects in trade invoicing and foreign-exchange turnover, alongside US legal enforcement, court independence and accounting standards that the strategist said remain more reliable than rivals’ alternatives.
AI adds a fresh pillar: OpenAI, Anthropic, Google DeepMind and Meta are US-based, while Microsoft, Amazon, Google and Meta are spending on infrastructure at levels rivaling midsized economies and Nvidia remains central to that ecosystem.
The strategist said those advantages still face tests from China’s AI and clean-tech gains, Europe’s stalled capital-markets integration and gradual reserve diversification into gold, but argued no rival yet matches the US on liquidity, convertibility and institutional trust.