Medeiros commented on the sharp correction in US equities, stating, “What is occurring is a rebalancing of world portfolios away from the US, which is now not distinctive.”
He linked this shift to the tip of expansive fiscal coverage, saying, “The U.S. authorities spent 5% of GDP in extra… that cash was primarily pushed to the non-public sector.”
He added that this has modified in 2025, noting, “Fiscal consolidation has, in our view, been a key catalyst for the correction and the tip of U.S. exceptionalism.”
