Gustavo Medeiros breaks down what’s driving investor moves in India, US and China – Market Outlook

Medeiros commented on the sharp correction in US equities, stating, “What is happening is a rebalancing of global portfolios away from the US, which is no longer exceptional.”
He linked this shift to the end of expansive fiscal policy, saying, “The U.S. government spent 5% of GDP in excess… that money was primarily pushed to the private sector.”
He added that this has changed in 2025, noting, “Fiscal consolidation has, in our view, been a key catalyst for the correction and the end of U.S. exceptionalism.”