It's that time of year again... when sell-side strategists and status-quo narrative defenders aggregate en masse around the 'outperformance' of the US economy compared the rest of the world (which - they note - explains why US stocks are outperforming as the US is the cleanest shirt) and declare - unequivocally - the US has decoupled.
The only problem with that meme - it's total and utter rubbish in the increasingly interconnected world in which we live, wage currency war, and trade with one another... as the chart above shows, its simply a temporal issue, not a structural decoupling...
Charts: Bloomberg
