After a Blistering First Half of the Year, Can Non-US Equities Continue to Outperform US Peers?

Yes, we believe a combination of attractive valuations, a shifting macro and policy environment, and stretched US profitability will allow non-US equities to continue outperforming. The overvalued US dollar may also reduce the attractiveness of US assets to foreign investors while acting as a tailwind for USD investors allocating to foreign assets. During the first […]

July 2025

Market Response to US-Iran Escalation Limited So Far

Last weekend, the United States conducted airstrikes on three of Iran’s principal nuclear facilities—Fordow, Natanz, and Isfahan. This marked a further escalation in Middle East tensions, which had already intensified after Israel began airstrikes on Iran on June 13. In response, Iran has now directly targeted US interests, launching missiles at US bases in Iraq […]

June 2025

EM Equity Performance Reflects Initial Tariff Risks

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

Asia Insights: Managing Risk Through Diversification

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

US Policy Changes Highlight Need for Portfolio Diversification

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

VantagePoint: Strategic Portfolio Construction in a Changing World

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

Tariff Standoff Intensifies Near-Term Risks in Asia

Global equities tumbled nearly 8% last week following the announcement of US tariffs on April 2, with the rout continuing into Monday, April 7. Key Asian markets have declined 3%–13% on Monday, partly reflecting the delayed reaction from markets that were closed on Friday, while US and European markets experienced wild swings after opening sharply […]

April 2025

Should Investors Underweight Equities in Light of Recent Market Volatility?

No, investors should hold equity allocations in line with their policy portfolio weights. Trade policy uncertainty has forced many investors to reassess the trajectory of global economic growth, sending ripples through markets, and prompting US equities to enter a “correction” on March 13. Still, there are strong arguments for holding equity allocations steady. For instance, […]

March 2025