In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, considers the question are we past peak US exceptionalism? If so, where are the alternative safe havens for investors.

(0:50) So, Tracey, you presented at a conference last week. Let's start with topic of your session: Have we seen peak U.S. exceptionalism?

(4:12) Just on the topic of ballooning government debt, the current fiscal proposal, the so called "Big beautiful budget bill" combines tax cuts with higher defence spending and no meaningful plan to reduce debt. It just ties in with investor concerns about fiscal recklessness.

(6:17) Let's look at what the market's telling us. U.S. equities? Basically, flat for the year. Meanwhile, German equities are up 20%. And what about the tech titans? The so-called Magnificent Seven – are they still magnificent?

(7:50) So, if the U.S. is losing its lustre, the next question is: who is looking more attractive? Is China a beneficiary of Americas decline?

(10:35) So, what does that mean for investors? Should we be increasing our allocation to China?

(11:44) If we are in world that is potentially going through structural change where can investors find shelter?

(14:45) What if you still wanted to be invested. You mentioned China is looking interesting again. Where else?