What will happen to US stock market if China is declared No1 country in the world?

Hi Ridhwan,

I think the disassociation between the two markets will increase. Currently, we see that the trends in US markets tend to have an impact on the rest of the markets throughout the world due to their financial dominance. However, going forward, we may see that this correlation decreases.

We can already see this happening in other facets of our life, like the Internet. With the ongoing tensions between the two states, technology is being heavily affected and we have so called "two internets" in the world.

In spite of increasing protectionist moves, I think the US remains a highly competitive economy and our lives are deeply intertwined with American enterprise, e.g. Apple, social media, etc. China remains an increasing power and it is very plausible that they will overtake the American economy in the coming years.

To answer your question, if you're in for the long term, I do not think that there will be a major impact on the markets and you should not avoid investing simply for this reason.

To capture the growth of China and the quality of American businesses, you should invest in both markets!​​​

My feeling is, that there will be U.S. / China win-win world co-dominance.

With all the printed money, however, the U.S. does not cure the system, there could be inner U.S. tensions on wealth distribution.​​​