Since the beginning of the year, the set in Chinese stocks encourages investors to predict that the land sections will surpass their American peers in the sign that attractive assessments are trying to make the idea of ​​”American exceptionality”.

Last week, the S&P 500 slipped for the first time since 2023 to a correction area since 2023, the MSCI index of China received 19% from the beginning of the year, until March 9, according to Goldman Sachs, which marked its best start to the year in history.

Contrasting wealth indicate a quick turnaround from just a few months ago when many Investors believed that the US were uniquely positioned to the time economic and political storms that blow other countries. Chinese shares also collapsed due to regulatory concerns and concerns about the health of the Chinese economy.

Much has changed since then.

US President Donald Trump’s tariffs strengthened speculation about economic slowdown in the world’s largest economy.

In the meantime, in China, Optimism over the ability of the artificial intelligence of the country The amplifier from the introduction of the Deepseek model R1 earlier this year.

“They have had a good period now and this is closer to the end because Trump’s policies are very anti-economy. China has had a very bad period, but it looks like it starts recovering,” Richard Harris, Port Shelter Investment Management, told CNBC, Richard Harris.

“I call him a big turn. Obviously, during the last 5 to 7 years, US markets were dominant. The magnificent seven went to the moon … [But] It seems it’s hard to see that there is a lot more for it, “Harris said.

Technologically heavy Nasdaq Composite is also on correction territory, withdrawn the sale in a magnificent seven sharesguided by recessionary concerns and fears of war stores. The magnificent seven consists Alphabet,, Amazon,, Apple,, Target,, Microsoft,, Nvidiaand Tesla.

“Capitalization on the stock market, compared to worldwide capitalization on the stock market, achieved a top peak late last year in the midst of the then prevailing talk of” American exceptionalism, “said Chris Wood, a global head of the Capital Strategy at Jeffers Hong Kong Global.

In the same sense, the Asia Specialist Eastspring Investments ‘Eastspring Investments’ Ken Wong believes that the US store ended the end of this year. The fiscal pesting and Trump’s tariff war is expected to slow down American economic growth at below 2% of this year, Wong said, compared to the consensus estimation of 2.2%.

He saw now Real Grease GDP of 2.8% 2024 compared to 2023. American debt and deficit situation got stronger During the first month of President Donald Trump in power, and since then it has been a priority to resolving government fiscal issues.

Stagflation is a key risk in the US because the tariff war could reduce economic activity to the recession point, increasing inflation, Wong added.

This could mean that the fall in US sections may not be done.

“We see the connection in American sections as a further departure,” Deutsche Bank wrote in a note posted during the weekend. “With the uncertainty of a trade policy that is likely to continue to weigh, at least until April 2, we expect that it will continue to relax.”

“Translating to the bottom of the position of positioning where he went in the last trade war, he would take S & P 500 Up to 5.250, “said Binky Chadha’s chief strategist. This will indicate more than 7% of diapositives from approximately Monday from 5,675.12.

On the other hand, China Tech shares are a tear from Deepseek’s breakthrough. The Chinese government also actively signaled its support to its technological sector, with plans to increase the financing on cards.

The Hang Seng Tech Index, which follows some of the largest Chinese technological companies listed in Hong Kong, has increased over 30% since the beginning of the year, according to LSEG data.

“Investors should ask for sales of sets in the US -Ui to buy corrections in Europe and China, where there is the most evidence of the basis improvement,” Wood told CNBC.

To be sure, the pure pace of the Chinese gathering could soon bring a correction, according to analysts at the Bank of America.

“China Hscei/MSCI performance in the last 17 MTHS is close to the trend ago, making us worry that we could soon approach some correction,” analysts wrote at the Bank of America in a report published on Monday.

Bank analysts believe that there are “fundamental similarities” between the current cycle and 10 years ago in terms of stimulus and reform of politics in the country, economic recurrence and technological breakthrough.

“I don’t worry so much because of the value assessment. It is important, but it’s not 100% factor. What is more important currently is that there is much more swing in the Chinese market,” Harris said, adding that Chinese government stimulus He crept into the economy and the market.

In a report published last week, Citi Research has upgraded China to overweight, while US shares reduced to neutral because he paused for American exceptionalism after overweight from October 2023, expecting more negative prints from the country’s economy.

However, Citi claimed that his neutral look was three-six months, emphasizing that now he would remain one of the leaders of AI, even if he is common with China.

“In a larger picture, we suspect that the AI ​​Bubble is already completely played,” wrote a strategy of an investment bank led by Dirk Willer.