Howard Marks, co-founder and chairman of Oaktree Capital, recently stated that while the United States remains the preferred destination for investors, his conviction in "American Exceptionalism" has softened. During a panel discussion at the 2025 Qatar Economic Forum, he addressed the topic:

“The term ‘American Exceptionalism’ is now widely discussed. Over the past 80 to 100 years, the U.S. has indeed held a dominant position globally, attributed to its vibrant economy, respect for free market systems, rule of law, capital markets, and innovative spirit. These factors are still present today, and I believe the U.S. remains a top choice for investors.”

However, he raised a critical question: “Is America still the best place it once was? Is it still trustworthy? It’s hard for me to imagine a large, globalized fund significantly reducing its investments in the U.S. All capital must find a home. Where else could it go?”

Saoud Salem Al-Sabah, managing director of the Kuwait Investment Authority (KIA), echoed similar sentiments in the same discussion, clearly stating KIA would not sell its American assets. “I can be very direct: reducing American asset allocation carries risks. People are always talking about decreasing positions in the U.S., but the question is what to replace them with? I believe the U.S. still possesses the breadth and depth to maintain its exceptional status.” However, Al-Sabah did not directly answer whether KIA would boost its investments in the U.S. as other Middle Eastern nations have. He noted: “If you’re already in the game, there’s no need to re-enter.”

Allianz’s chief economic advisor, Mohamed El-Erian, recently remarked that the era of American exceptionalism isn’t completely over but has been “paused.” He cautioned that it’s too early to declare the damage as irreversible, adding that trade conflicts and the accompanying uncertainties must cease. Although he does not fundamentally oppose tariffs, El-Erian believes that if the aim is to establish a fairer trading system with partner countries, “limited and controlled tariffs and a ‘promote upgrade to reduce’ strategy makes sense,” but he sharply noted that the current tariff clashes try to achieve multiple goals simultaneously: increasing external revenues, lowering taxes, and protecting domestic industries. These goals contradict each other and can cause collateral damage. His remarks coincided with Moody’s downgrade of U.S. AAA credit ratings, which he called “historically significant but likely to have limited market impact, while the real risk is that, as the exceptionalism pauses, the world reassesses its faith in U.S. assets.”

Marks also discussed investment during the panel, asserting that its essence involves appropriately taking risks to achieve profits. He emphasized the importance of understanding risks rather than avoiding them. “If avoiding risk ultimately leads to forfeiting returns, we must consciously and wisely take risks to achieve profits.” Nonetheless, he carefully delineated: “The risks we should take are those we can recognize, analyze, diversify, and endure.”