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Belief in 'American exceptionalism' among global investors has never been higher - Per Morgan Stanley

Posted: Oct 9th, 2018 - 8:34 am

• Global investors are betting on America's economic success now more than ever, says Morgan Stanley Investment Management's Ruchir Sharma.

•"This year has been a story of how well America has done," he says.

Global investors are betting on America's economic success now more than ever, Morgan Stanley's Ruchir Sharma told CNBC on Monday.

"This year has been a story of how well America has done," he said on "Squawk Box," calling it an example of "American exceptionalism."

"We may or may not believe in [American exceptionalism], but the financial markets have never believed in it to such an extent," added Sharma, head of emerging markets and chief global strategist at Morgan Stanley Investment Management. The global firm has $474 billion in assets under management, as of June 30, 2018.

The strong economy has been touted by Trump administration officials such as top aide Larry Kudlow, who called it "the hottest economy in the world."

Second-quarter gross domestic product gained 4.2 percent, according to the government's final reading. And it appears the momentum has continued. The Atlanta Fed's GDPNow real-time indicator put the third-quarter growth at 4.1 percent, as of Monday.

Combine those figures with the first quarter's 2.2 percent gain, and the economy stands to grow at an average of 3.5 percent for the first nine months of 2018.

Sharma said that excellent economic performance is reflected in the "very richly valued" U.S. financial markets.

In fact, the stock market has doubled over the last decade, leaving a "huge gap" compared with international markets, particularly emerging ones, he added.

The S&P 500 is up 7.65 percent this year. Meanwhile, the iShares MSCI Emerging Markets ETF (EEM) dropped just over 13 percent in the same period.

However, the U.S. stock market hit a snag over the last three trading sessions, selling off after a jump in interest rates. That's led some prominent market watchers, like Wharton's Jeremy Siegel, to predict a difficult time for equities in the coming months.

LINK/URL: Morgan Stanley: Belief in 'American exceptionalism' among global investors has never been higher

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Belief in 'American exceptionalism' among global investors has never been higher - Per Morgan Stanley (Views: 214, 2018-10-09, 8:34 am)
- The Left's perverse idea of "American Exceptionalism" - In a post below, someone compared (Views: 213, 2018-10-09, 8:49 am)
  - The Left is destroying the pillars of Western Civilization - with their cultural revolutions. (Views: 182, 2018-10-09, 12:13 pm)
    - It's impossible to have a rational discourse with them. - Think about trying to talk about (Views: 167, 2018-10-09, 2:26 pm)
    - Thankfully people are waking up to the lunacy and criminality of the left - anon (Views: 292, 2018-10-09, 2:32 pm)
  - American exceptionalism simply means America was - the exception to the rule in the way (Views: 155, 2018-10-10, 4:51 am)
- Oh really, that is what they call American - Exceptionalism? (Views: 273, 2018-10-09, 3:28 pm)
  - MT industry hit the toilet in 2011 - under Barack Hussein O. (Views: 166, 2018-10-09, 3:42 pm)
    - So I am not disgreeing with you - except about Obama, but (Views: 210, 2018-10-09, 4:00 pm)
      - I choose to not look at myself as a victim. - Person to whom you responded (Views: 224, 2018-10-09, 5:58 pm)
        Not a victim either, just a realist - and one who loves MT (Views: 251, 2018-10-09, 6:36 pm)
        I also choose to be happy and positive and do not buy into - leftist scare tactics. (Views: 161, 2018-10-09, 10:34 pm)
        Ditto, I also choose not to look for the government to - solve all my problems, including (Views: 131, 2018-10-10, 3:26 am)
        I think it's the difference between being self reliant and - reliant on government. (Views: 172, 2018-10-10, 5:22 am)
  - What do you mean a "good govt for poor and middle class - people?" The left loves govt (Views: 133, 2018-10-10, 5:16 am)
    - That's code for "I want more freebies." Corporatism is neither - left or right. Look at GE, Google, Apple, (Views: 136, 2018-10-10, 5:18 am)