Jon Cendreu

There's a breed of investors that are concerned about how big the budget deficit is and how big the current account deficit is. These concerns are overblown. But generally, the fact that there is a sell-off in treasuries at a time when the market is concerned is a bad thing. Because usually, people think of treasuries as this safe asset that everyone piles into

There's a breed of investors that are concerned about how big the budget deficit is and how big the current account deficit is. These concerns are overblown. But generally, the fact that there is a sell-off in treasuries at a time when the market is concerned is a bad thing. Because usually, people think of treasuries as this safe asset that everyone piles into

when there's concerns about the global economy. Now we've had this shock of tariffs and the trade war, and everybody's thinking the opposite. And it's thinking, oh, my God, I biased my portfolio too much towards the U.S., even though I'm based in Norway or Japan or whatever it is. And I should really correct that.

when there's concerns about the global economy. Now we've had this shock of tariffs and the trade war, and everybody's thinking the opposite. And it's thinking, oh, my God, I biased my portfolio too much towards the U.S., even though I'm based in Norway or Japan or whatever it is. And I should really correct that.

The U.S. stock market has ridden this wave of foreign money and it has helped push valuations really high. The percentage of the U.S. stock market owned by foreigners, it's gone from about a quarter to a third of the total market capitalization. So clearly there's been this support of foreign enthusiastic buyers who couldn't get these types of returns in the U.K.

The U.S. stock market has ridden this wave of foreign money and it has helped push valuations really high. The percentage of the U.S. stock market owned by foreigners, it's gone from about a quarter to a third of the total market capitalization. So clearly there's been this support of foreign enthusiastic buyers who couldn't get these types of returns in the U.K.

or in Europe or in Japan, and they were seeing them in the U.S., We should remember that part of the reason why these returns were higher is because the U.S. truly has faster growing companies and better companies. And that's not going away. So the idea that necessarily the U.S. stock market has to fall in line with the rest of the stock market around the world is not necessarily true.

or in Europe or in Japan, and they were seeing them in the U.S., We should remember that part of the reason why these returns were higher is because the U.S. truly has faster growing companies and better companies. And that's not going away. So the idea that necessarily the U.S. stock market has to fall in line with the rest of the stock market around the world is not necessarily true.

So there is a certain indication that part of this was foreigners buying. If now they slowly sell, that will have an impact. So I have the impression that it's not the end-all, be-all, but it will definitely be a drag on U.S. stock performance going forward.

So there is a certain indication that part of this was foreigners buying. If now they slowly sell, that will have an impact. So I have the impression that it's not the end-all, be-all, but it will definitely be a drag on U.S. stock performance going forward.

Thank you.

Thank you.