Oaktree Capital Management co-chairman Howard Marks preserves his faith in the enduring attractiveness of the United States to international investors but recognizes its perception of invincibility may be diminishing.
At the Qatar Economic Forum Marks explained that the U.S. continues to attract investors through its powerful economy and sound capital markets and law-based system. The United States has maintained its dominant world position since 80 to 100 years ago. Those things haven’t gone away.”
According to Marks the U.S. has faced increased investor skepticism regarding its position as a global leader because of reliability doubts and rising policy uncertainty alongside geopolitical instability. The dependability of America stands as a subject for personal assessment according to his statement.
Global investors lack sufficient viable choices according to Marks. Everything has to go somewhere. Where would it go? What’s better?” he asked rhetorically.
Sheikh Saoud Salem Abdulaziz Al-Sabah who serves as the managing director of Kuwait Investment Authority one of the world’s largest sovereign wealth funds supported Marks’ statement during the same panel. Underweight America at your own risk” was the clear statement made by Al-Sabah.
The two leaders maintain their faith in the U.S. economy’s foundational strength yet their statements demonstrate a changing investment environment. The combination of growing national debt with Washington’s fiscal disagreements and increasing political divisions has prompted questions about America’s future prospects among its strongest financial supporters.
The unmatched level of U.S. financial markets persists in its extensive reach and deep market structure. The U.S. maintains its position as the world’s leading capital destination because it has the dollar as its reserve currency together with its innovative ecosystem and protective legal system while emerging markets and alternative financial centers slowly increase their influence.
According to Marks and Al-Sabah the United States functions as the standard for all global investors who make their allocation decisions despite its flaws. America’s exceptionalism remains in question because global sentiment changes rapidly in today’s world.
