VantagePoint: Electrifying Returns in the AI Era
In this edition of VantagePoint, we examine how the rise of AI is reshaping the global energy landscape and highlight the most compelling opportunities and risks for investors.
Asia/Pacific
A US-China Trade Deal Would Show Desire for Gradual Strategic De-risking, Not Abrupt Decoupling
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.
Review of Market Performance: Fiscal Year 2025
US tariffs added to market volatility in the fiscal year ended June 30, 2025. Nevertheless, most risk assets ended the year higher, supported by strong earnings ahead of tariff uncertainty and the prospect of continued central bank policy easing to support growth.
Asia Insights: Managing Risk Through Diversification
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.
Tariff Standoff Intensifies Near-Term Risks in Asia
Global equities tumbled nearly last week following the announcement of US tariffs on April 2, with the rout continuing into Monday, April 7.
Review of Market Performance: Calendar Year 2024
Most risk assets enjoyed strong returns in the calendar year (CY) ended December 31, 2024. US equities led on better-than-expected economic data and AI-related growth.
Private Infrastructure: Secular Themes Offer Compelling Opportunities
This note provides an update on the current opportunity set in infrastructure investments and highlights some of our preferred areas in the private space, including energy transition and digital infrastructure.
Asia Insights: Seeking Stable Returns
With the global economy showing signs of cooling and Chinese economic momentum remaining weak, the outlook for Asian markets is increasingly mixed.
VantagePoint: As the Narratives Turn
In this edition of VantagePoint, we find that consumers, corporations, and the banking sector remain in good shape, and while US/global economic growth is likely to slow in the second half of 2024 relative to the first, we expect it will remain positive. Although market concentration risk is elevated, given its focus on highly profitable AI-related tech stocks, we would seek to be measured about diversifying such risks.
Will Federal Reserve Rate Cuts Trigger Outperformance for Chinese Equities?
No, Federal Reserve rate cuts alone are unlikely to trigger sustained outperformance for Chinese equities.