Why the US Is Getting Downgraded

Markets used to know what to do in a crisis: buy Treasuries, run to the dollar and assume America would be the anchor. It's called US exceptionalism. But almost four months into Donald Trump's second term, it's become clearer that the US is no longer a predictable, stabilizing force. Ratings firms like Moody's are downgrading its sovereign debt while at trading desks across the globe, models built on American's top-of-the-heap status are quietly being rewritten. If US exceptionalism is faltering, what will take its place? And how do you hedge when the hedge is uncertain?

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