Yes, California Carbon Allowances (CCAs) are an attractive investment opportunity, though they come with political tail risk. California’s Cap-and-Trade Program requires companies in regulated industries to purchase CCAs to offset a portion of their carbon emissions. The CCA supply is mandated to decline over time to support higher carbon prices and discourage emissions. After peaking […]
May 2025
Emerging markets (EM) economies were among the hardest hit as part of US President Donald Trump’s sweeping reciprocal tariff announcement. This was because EM countries tend to run trade surpluses with the United States and the administration’s tariff methodology ostensibly focused on bilateral trade deficits. While trade negotiations may ultimately result in a less draconian […]
May 2025
Introduction Aaron Costello, Head of Asia, and Vivian Gan, Investment Director, Capital Markets Research Asian and global market volatility surged in early 2025 as US tariffs triggered global growth fears. Given the export-oriented nature of most Asian economies and their sensitivity to global growth and demand, the region may bear the brunt of US tariffs. […]
April 2025
No, we don’t think so. Gold has benefited from concerns about economic growth, inflation, and waning confidence in the US dollar, creating a perfect storm for bullish sentiment. While these factors could continue to support gold in the short term, the current momentum appears unsustainable. Gold’s recent climb to an all-time inflation-adjusted high increases the […]
April 2025
After a prolonged period of US outperformance, many investment portfolios have become heavily concentrated in US equities, particularly tech stocks. They are also significantly exposed to the US dollar across public, private, and alternative assets. Recent policy shifts now challenge US economic and financial hegemony, increasing the risk to equity and currency outperformance. Investors should […]
April 2025
No. Following President Donald Trump’s announcement about reciprocal tariffs on April 2, credit spreads have widened for US high-yield (HY) bonds and broadly syndicated loans, prompting some investors to ask whether it’s an opportune time to add exposure to these assets. We believe it is too early. Spreads for most assets are merely back to […]
April 2025
With events unfolding daily (even moment to moment), it is not yet clear how the nearly $2 trillion of assets in the private equity and venture capital market will be impacted. However, given the diversity and breadth of industries across the private markets, it is clear that the impact won’t be uniform. Private company valuations […]
April 2025
The complexities of ever-changing markets present both challenges and opportunities for compounding wealth over time. Amid significant market volatility, investors should stay focused on sticking with their long-term strategy while looking for opportunities as they evolve. Shifting geopolitical alignments, the prospect of persistently high tariffs, rising sovereign debt in developed markets, and the end of […]
April 2025