US Economy 'Much Better Than The Rest Of The World' Despite Geopolitical Strains, Says Expert

Amid rising geopolitical tensions, the U.S. economy continues to demonstrate remarkable resilience, according to Simeon Hyman, Global Investment Strategist at ProShares Advisors. Hyman emphasized that the U.S. economy is outperforming its global counterparts, even as uncertainties loom.

What Happened: In a recent CNBC interview, Hyman highlighted “income” as a key factor, noting that fixed income markets offer substantial opportunities. He suggested that these markets could yield returns of 10-15% if geopolitical tensions continue to rise.

Hyman pointed out that the fixed income market currently offers a yield close to 4% on the ten-year bond, which could drop to 3% or lower in adverse scenarios. This situation presents a potential for significant gains on bonds during global turmoil, a scenario not seen in a decade.

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Despite global tensions, Hyman remarked on the positive economic indicators in the U.S., including a 50-point basis cut and a soft landing.

“If you can divorce yourself from the geopolitical tensions, the U.S. is much better than the rest of the world and looking pretty good from a solid economic footing,” he said.

Why It Matters: The U.S. economy’s resilience is noteworthy, especially as global markets face challenges. On Oct. 3, the Nifty 50 index in India opened significantly lower due to concerns over escalating tensions in the Middle East. This highlights the impact of geopolitical issues on international markets.

Meanwhile, the U.S. markets showed a different picture. On the same day, the S&P 500 settled slightly higher, despite the ongoing Middle East concerns. The CNN Money Fear and Greed index indicated an improvement in market sentiment, remaining in the “Greed” zone. This suggests that investors maintain confidence in the U.S. market’s stability and potential for growth despite external pressures.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari