Home Insights Equities Why U.S. equities still belong at the core of retirement portfolios
Arial view of a city skyline.

Despite concerns over slower GDP growth, rising debt, and geopolitical and tariff tensions, U.S. exceptionalism persists, supported by strong fundamentals. In fact, even as international equities attract attention and valuations become elevated relative to their history, U.S. earnings continue to strengthen. For retirement investors, despite risks like political instability, U.S. equities should remain a critical anchor in portfolios and are essential for long-term wealth accumulation.

Recent headlines have raised doubts about U.S. equity markets, as slower GDP growth, rising national debt, and geopolitical/tariff tensions all weigh on sentiment. Yet the case for U.S. exceptionalism remains compelling. Enduring structural strength continues to support long-term growth, reinforcing the importance of U.S. equities as a core component of retirement portfolios.

International markets have attracted attention, particularly amid fiscal loosening abroad and relative valuation appeal. However, those advantages may be narrowing, as strong investor demand has already driven international valuations to decades-long highs. By contrast, U.S. corporate earnings remain resilient, with fundamentals that underpin a durable investment case.

Historically, skepticism about U.S. equity performance has often preceded renewed outperformance. Following the 2008 financial crisis, for example, aggressive stimulus led to a remarkable rebound in the S&P 500. Today, the enduring attributes of U.S. exceptionalism, including a robust legal framework that enhances investor confidence, unmatched liquidity and asset diversity, leadership in technological advancements, and strong domestic demand that supports growth, all help position the U.S. favorably against peers.

Risks such as political instability or productivity declines should not be dismissed, but they remain longer-term considerations. Until fundamentals materially change, U.S. equities are likely to remain crucial for retirement investors seeking long-term wealth accumulation. Anchoring investment decisions on fundamentals, rather than on shifting narratives, provides the best path to securing a stable financial future.

For a closer look at the case for U.S. exceptionalism, read Still exceptional: Why U.S. equity remains a cornerstone of retirement portfolios.

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