American exceptionalism: can the momentum continue?

RBC Global Asset Management examines the sustained dominance of U.S. equities, key economic drivers, and potential risks to continued growth.  

Key Takeaways: 

• Equity Market Leadership: The S&P 500 outperformed global indices, returning 25% in 2024, driven by innovation and corporate profitability.  
• AI & Productivity Boom: The U.S. leads in AI, with projections estimating a 17.5% GDP boost over 20 years.  
• Economic Strength vs. Risks: Strong GDP growth (2.9% in 2024) supports optimism, but high **U.S. deficits (6.9%) and market concentration** pose risks.