When people hear the term “American exceptionalism,” they tend to think of a jingoistic expression dished out by crass pundits who see the United States’ culture, morals, or broader position in the world as superior to other nations. But ever since the end of the Global Financial Crisis (GFC), this divisive term has slowly taken on a new meaning in financial circles.
For economists, analysts, investors, and the like, American exceptionalism refers to the relative outperformance of the U.S. economy and stock market compared to its developed peers in recent decades, particularly in the wake of the pandemic. It’s the idea that there’s a confluence of factors—a special sauce, if you will—that has made the American economy and markets structurally more robust and resilient in the 21st century.
