Markets + Economy = US Leads the Rest Follow

If the world leads in anything, it is in the systemic risks it can introduce—whether through a virus, a supply-chain shock, or other forms of global disruption.

Beyond that, it is the United States that leads the capital markets.

If overnight activity is ultimately determined more by the U.S. close than the U.S. session is determined by overnight activity, then the implication is clear: much of the world is reacting rather than leading.

As a market participant, I’m not sure how I would feel about being part of the lag rather than the source of price discovery.