My Opinion On The US Equity Market

U.S. companies have proven remarkably resilient… here’s the evidence:

Over the past five years, global markets have been tested in ways few could have predicted. We've witnessed a pandemic, war in Europe, negative oil prices, the fastest rate hikes in decades, regional bank failures, and political standoffs over the U.S. debt ceiling.

I find it remarkable given the events over the last five years the S&P is at where it is. Crisis after crisis American companies have continued to persevere and thrive. We have seen retailers adopt e-commerce, we have had manufactures retool their operations to address supply chain issues, tech companies supported the world through remote work during the pandemic. The negative headlines can be scary but I am a long term bull when it comes to American business. We have the track record and longevity to prove to ourselves and the rest of the world we have what it takes to make it and thrive in the face of bleak circumstances.

Many US companies benefited from years of low interest rates. This allowed many US companies to strengthen their balance sheets, reduce debt, and reinvest in innovation. Coming out of the Pandemic US business led the global rebound. We regained leadership in sectors like semi conductors, biotech, and clean energy. American business was well prepared going into the pandemic and I believe that preparedness allowed us to come out of that mess strong.

The Federal Reserve’s rapid rate hikes from 2022–2023 created real pressure. But again, U.S. corporations proved durable, we weathered one of if not the fastest interest rate rises in US history. Firms that had strong cash flow adapted quickly to the new interest rate environment and were able to deal with the pressure. Even during the regional banking crisis of 2023, broader corporate credit markets remained stable. I believe this a testament to corporate discipline and investor confidence.

What all does this mean to you as an investor?

The key takeaway isn’t that US companies are invincible but that they’re remarkably resilient. In a world full of risk, uncertainty, and disruption, the ability to adapt quickly, operate efficiently, and innovate consistently gives US firms a long-term edge.

A major key to success that I don’t here discussed is the following:

I think our international talent pool is crucial to our success and who America is. We need to be the place people want to go, if we ever become not the place people want to go to take risks and do business I think we will lose our edge. America is a country of immigrants, we all built this country together. We all come from different backgrounds, religions, creeds, and circumstances. America being the melting pot of the world is a strength, not a weakness.