economy

The downsides of making $13tn of profit

Betting on US equity has been staggeringly lucrative for the rest of the world, but it is now far more exposed to a market crash

The downsides of making $13tn of profit

TL;DR

  • Foreign investors have profited $13 trillion from US equity investments.
  • The rest of the world is now highly exposed to a US market crash.
  • Previous lucrative betting on US equity now puts investors at risk.