Joseph Quinlan and Lauren Sanfilippo on American exceptionalism vs. isolationism

Globalization is in remission, while its opposite, isolationism, is being rekindled by nationalists around the world, including in the U.S. 

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Most at risk will be open, trade-dependent economies across Europe, Asia, and much of the emerging market universe. These states are the most exposed to an inward-looking world losing its appetite for cross-border commerce. This is a key reason investors remain lukewarm on the export-oriented markets of Europe among the developed markets and on China and Mexico in the emerging world. 

In contrast, the preference for—and outperformance of—U.S. equities remains in place in part due to the simple fact that no country is better disposed toward economic autocracy and isolationism than the U.S. 

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If there were ever an economy built for isolation, it is the United States. If the nation does become a global dropout and opts for retrenchment, the world will become a messier place, but with the U.S. still on top. Stay long America.

~ Joseph Quinlan and Lauren Sanfilippo, "U.S. Exceptionalism Will Thrive in a World in Retreat," Barron's, January 4, 2025