Compare them, and it's still the best.

Preamble: If we can't compare who is better, we can only compare who is worse.

$Dow Jones Industrial Average(.DJI.US)

The fiscal deterioration of the U.S. government has persisted for years, especially during the pandemic. The worst part was that former President Biden continued to distribute massive stimulus checks even after the pandemic had largely ended, totaling around $4 trillion (approximate figure). This became one of the major causes of the worst inflation the U.S. has seen in over two decades.

All three major rating agencies have downgraded U.S. Treasury bonds, including Moody's, which is traditionally the most government-friendly. This indicates that despite the U.S.'s significant advantages in global trade, finance, and technology, these strengths are no longer sufficient to offset its ongoing fiscal deterioration.

However, compared to other major economies like the EU, Japan, and China, the U.S. still holds a stronger position overall (in terms of economic growth, national debt, etc.). International capital continues to favor the U.S., and this reality is unlikely to change in the foreseeable future. Trump and his chaotic administration may worsen the fiscal situation, but they won't undermine the foundations of the U.S. dollar, Treasury bonds, or the stock market.

The correlation between U.S. bonds and stocks has returned to negative territory, with bond yields now higher than the S&P 500's returns. U.S. Treasuries and high-grade bonds remain crucial tools for portfolio diversification. It's hard to imagine abandoning the dollar for the yen or the euro—those seem even less reliable.

After the U.S. and China (G2) resumed trade and tariff negotiations, several investment banks revised China's GDP growth forecast for this year. Initially, during the tariff war, estimates were around 4%, but now they stand at approximately 4.6%. Similarly, the yuan's projected exchange rate by the end of 2025 was initially around 7.6, but the current target is closer to 7.1.