The U.S. debasement trade is ‘not over’

PwC US chief economist Alexis Crow says investors are continuing to diversify away from U.S. assets even as equity markets hit all-time highs. She attributes recent gains in the S&P 500 and Nikkei more to expectations of fiscal stimulus than to underlying economic strength. At the same time, investors are uneasy about the underperformance of traditional safe havens and rising geopolitical risks. Crow also warned that increasing Japanese government bond yields could create unexpected portfolio risks for global investors. The outlook suggests continued asset reallocation flows (potentially toward non‑U.S. assets and alternatives such as gold/XAUUSD), but also highlights cross‑market vulnerability from bond yield shifts.