Global Investors' Course Shifts Toward Alternative Markets Outside the US

The US-centric investment trend that has long dominated the international financial system is entering a period of change due to the country's increasing debt burden and high valuation pressures.

Long-Term Dominance of American Markets

Since the global financial crisis, American stocks have outperformed other regions, delivering an average annual return of around 17 percent.

The US has successfully maintained its status as the world's indispensable investment center for a long time.

New Era and Performance Increase in Global Stock Exchanges

Over the past two years, the performances of stock exchanges outside the US have begun to approach and, at times, surpass American markets.

Accelerating profits in European companies and corporate governance reforms in Japan are drawing attention.

US Debt and Valuation Pressures

The Washington administration faces significant financial challenges such as a debt approaching 40 trillion dollars and a high budget deficit.

Elevated valuations in technology companies driven by the artificial intelligence effect pose risk factors in the markets.

Decline in Foreign Investors' Bond Shares

The share of foreign investors in US Treasury bonds has declined from 57 percent after the global crisis to 32 percent.

China's portfolio of American bonds dropped to 633.4 billion dollars, the lowest level seen since September 2008.

Opportunities and Needs Arising for Turkey

The shift in global capital brings along the opportunity for Turkey to compete among alternative markets.

To stand out, Turkey needs persistently falling inflation, strong reserves, and predictable economic policies.