US Equities Top the Globe’s Fastest-growing Assets Class of Q1 2023 With a 9.8% Return

The globe has seen immense economic growth, with global equity returns standing at 4.1%, following the financial crisis in 2022. The US saw unprecedented gains in their financial assets in Q1 23, despite battling a banking crisis with the fall of Silicon Valley Bank, soaring inflation rates and interest rates. According to StockApps.com, the US took the lead in global growing assets with a 9.8% return in Q1 23.

The site’s financial analyst Edith Reads comments, ” US financial assets have grown exponentially, suggesting the near- end to hiking inflation rates and interest rates world-wide, spiraling more opportunities for investors. However, investors need to be more cautious as this growth comes with considerable volatility.”

The Global Asset Class Ranked

The US equities’ returns were followed closely by European equities with 9.0%. The technology sector, in particular, contributed significantly to the high equity returns. Examples include Nvidia (159%), Meta (120%), Apple (36%), and Microsoft (37%). Tesla stocks also rose to about 59%, while Bitcoin and Ethereum saw 71% and 52% increases, respectively.

Commodities dropped by 6.7%, and bonds fell in the middle of the pack with a 2.6% return rate. The Chinese equity market faced challenges due to worsening economic ties with the US and underwhelming economic data.

Why Did the US Have the Fastest Growing Assets in Q1’23?

The rave around artificial intelligence propelled the rise in US financial assets, with more tech companies interested in it. During Q1 23, tech companies saw an inflow of $8.5 billion due to AI output.

More investors built up their stocks, expecting the Feds to lower interest rates. The Fed increased interest rates as a countermeasure to high inflation. However, with the inflation rates receding, the Feds promised to lower interest rates by the summer of 2023, causing investors to swamp up their stocks, given future returns.

Countries like the US and UK are now at ease after suffering turbulent economic times. The growth in equity returns gives hope to the rest of the world. People will soon see relief as inflation rates are dropping and more money is in circulation. 

The US is predicting further growth in their financial assets, and we can only hope the same for the rest of the world.