Economic contagion

The familiar economic adage states, “If the U.S. sneezes, the rest of the world catches a cold.” Yet as Torsten Slock of Apollo Asset Management notes, in today’s globalized environment, the reverse also holds true. Forty-one percent of S&P 500 companies’ revenue is generated overseas, underscoring how events in Europe and China can reverberate through American markets. While we still believe in U.S. exceptionalism and recognize its enduring role as a key global growth engine, the American economy is not entirely sheltered from the world’s economic shifts.