This World Is Bigger Than U.S.: Considerations in Investment Diversification

The United States hosts the largest and most consolidated capital markets in the world, making it a prime destination for investors seeking stability and growth. U.S. companies operate in the world’s largest economy, driven by a culture of innovation that keeps them at the forefront of major technological advancements. The country is home to global technology giants that deliver profitable growth with minimal cyclicality. Additionally, U.S. management teams broadly prioritize profitability and shareholder returns. The U.S. dollar’s (USD) reserve currency status further attracts investment flows to U.S. assets. These qualities have made the United States an exceptional market for investors.

Some U.S. investors have recently questioned U.S. exceptionalism and are considering moving at least a part of their assets abroad. This sentiment shift follows notable volatility in U.S. safe-haven assets during April and May of 2025. Since 2022, the U.S. dollar and the U.S. treasury yields have moved largely in lockstep. But after “Liberation Day,” when President Donald Trump announced widespread tariffs, the dynamic shifted, with investors selling treasuries and dollars in tandem. Days when the dollar weakened coincided with an increase in U.S. bond yields (Display 1). The breakdown in this relationship appears to signal declining confidence in the USD as a safe-haven asset, at least in the short term.

Several other factors are also at play, including geopolitical tensions, elevated U.S. equity valuations, and slower economic growth prospects. Amid the prospect of waning U.S. dominance, such investors worry that their portfolios may be overly concentrated. Identifying the source of concern is key. Although the authors believe there is a case for ongoing U.S. economic strength and continued global appeal, it’s important to address and separate three main perceived risks: currency, geography, and jurisdiction. Isolating these risks can provide investors with a clearer framework for decision-making—especially during periods of heightened uncertainty.

For more information see Bianca Ko and Evelyn Vigistain “This World Is Bigger Than U.S.: Considerations in Investment Diversification,” ABA Probate and Property Journal, November 3, 2025.