The post-election day rally in U.S. stocks has faded over the past two weeks, but major U.S. indexes like the S&P 500 are still sitting on gains.
But stocks, bonds and commodities traded internationally have seen sharp declines over the same period. Their losses look particularly acute when measured in U.S. dollar terms as the greenback has rallied.
On Thursday, a team at Deutsche Bank provided a snapshot of how global assets have performed since Nov. 5, depicted in the chart above.
“Since the US election, global markets have probably reacted as you’d have expected if you were concerned about the new administration’s trade policy, and if you thought US exceptionalism would continue,” said Deutsche Bank’s Jim Reid, head of global economics and thematic research at Deutsche Bank, in a note shared with MarketWatch via email.
While investors have repeatedly compared the reaction to this year’s election to 2016, Reid offered one note of caution for investors bulled up on U.S. stocks.
“Obviously, a lot of people have mentioned the 2016 playbook. But it’s worth remembering that the S&P 500 was only up +1% in the 18 months before election day 2016, so there was a lot of room to catch up after a sluggish period. By contrast in 2024, the index was up +40% in the 18 months before the election, so building on that would be historically impressive even if continued U.S. exceptionalism remains the main market take from the election so far,” Reid said.