Bank of America: ‘Nobody can keep up the US in the long term’

During the first weeks of the trade war, the financial market saw the first signals of a true character change. Capital began to flee from the United States, and other markets suddenly started to perform better. Both in Europe and in Asia, the stock market indices shot up, while the big boys in the US lagged behind.

According to Bank of America CEO Brian Moynihan, however, investors do not have to count on a continuation of that trend.

America remains the boss

In a new interview with Barrons, Moynihan shares four reasons that contribute to the A-status of the United States as a country to invest and undertake.

“What makes the United States fundamentally strong is the rule of law.

The ability to have a flexible labor market, the possibility to bring people into the country, even under different rules over time.

But also the ability to innovate … from fundamental research to full commercialization, at a level that no one else equals. And then the assets of the American capital markets that make innovation possible; From pure science all the way to market introduction. Those are characteristics that America has always had.

And what makes America also important is the final question. After all, it is the largest economy in the world, two thirds of which are driven by consumer spending. If I sell consumer goods somewhere in the world, or machines to produce consumer goods, then I have to think about the American market. Because even though other countries have more inhabitants, in terms of spending and GDP per head of the population, nobody comes close. ”

Nothing can match America in the long term

Although the CEO of Bank of America acknowledges that sentiment over the United States can change in the short term, the fundamental benefits of the largest economy in the world continue to exist.

“I think the opinions about what to do in the coming six months, the coming year or the next two years will continue to fluctuate. But over longer periods America is the best place to invest,” said the clear story of the CEO of Bank of America.