No, we continue to believe the US dollar faces meaningful downside risks over the next few years and recommend that investors remain underweight the dollar in portfolios. While the US dollar could appreciate further in the near term if the conflict in Iran intensifies and oil prices continue to rise, the situation in the Middle…
Overall, we see the election outcome as positive for the Japanese economy and, by extension, the yen.
While Asia has demonstrated resilience to economic and geopolitical challenges, risks remain, and we expect economic growth and equity beta prospects to moderate as the region faces headwinds from slowing export growth and cooling consumption.
In 2026, investors should rebalance portfolios to embrace greater diversification, thoughtfully navigate opportunities in artificial intelligence, and prioritize investments across the electricity transmission value chain. With heightened equity risks and a weakening US dollar, a disciplined, multi-asset approach will help strengthen portfolio resilience and capture emerging growth themes.
Global markets rallied on October 26 following news that the United States and China have reached a “preliminary consensus” on several key issues. Although a formal agreement has not yet been announced, both sides are clearly working to de-escalate trade tensions that intensified in early October.
In this edition of VantagePoint, we examine the historical context of the dollar, outline why we believe the recent decline is likely part of a multi-year bear market, and discuss strategies investors can use to reduce their dollar exposure.
Given the fluidity of the situation in the Middle East and the uncertainty surrounding how events may unfold, we believe most investors should not make changes to portfolios in response to this event.
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. As such, Asia market volatility is likely to persist in the near term, particularly since US trade policy can shift abruptly.
Global equities tumbled nearly last week following the announcement of US tariffs on April 2, with the rout continuing into Monday, April 7.
We expect developed markets value and small-cap equities to outperform, given our economic views and their steep valuation discounts. Regionally, we believe US equity performance will not match the level set in 2024, allowing European, Japanese, and emerging markets equities to perform more in line with broader developed markets. Within emerging markets, strong Indian equity gains should moderate, while we doubt Chinese equities will collapse. At the same time, we expect long/short equity strategies will perform better than typical.