Insights

For almost two decades, beta was the only game in town and alpha a loser's game. This era is ending, and we lay out why a more multipolar, dirigiste, and AI-disrupted world is pushing dispersion structurally higher, creating renewed alpha opportunities....

Today's concerns about Private Credit are overstated. We provide our three-criteria framework that investors can use to track Private Credit's doomsday risk. Systemic crises build over years and decades. In Private Credit, that build is happening now....

Yen weakness and rising JGB yields aren't a fiscal crisis; they're a market pricing an overheating economy and a BoJ falling behind the inflation curve. We lay out why the endgame is near, and what to watch before buying the yen this winter....

Small-cap outperformance has been driven mostly by within-sector stock selection, not differences in sector weighting. With the small-cap earnings catch-up reversing and leverage rising, we would fade the low-quality small-cap rally. We still want cyclical and AI exposure, but through higher-quality...

Europe faces a difficult macro backdrop, but whether it slips into recession remains finely balanced. We present two perspectives before translating them into investment implications. ...

Global equities have reached extremes on multiple measures, none of which are reliable timing tools. But imbalances in economics and investing can build for far longer than rational analysis would predict - and usually unravel much faster than investors expect....

Most Fed and pundit assessments of inflation expectations are overly narrow, focusing too much on long-term market-based measures. We favor a more qualitative approach that asks whether the inflation outlook is influencing household and business decision making....

The Strait of Hormuz is a unique geographical feature. Other than the Bosporus and Dardanelles Straits that allow passage between the Mediterranean and the Black Sea (via the Sea of Marmara), there are very few other such, economically valuable, choke points. What many armchair geopolitical strategi...

As long as the AI boom keeps booming, all other investment considerations will remain on the back burner. However, if the AI trade fizzles, this would expose deep-seated problems within the global economy, which could very well lead to an economic downturn as early as next year....

China's economy is slowing, but policymakers are unlikely to launch broad-based stimulus in H2. Meanwhile, the emergence of China's "Kimi moment" underscores Beijing's commitment to technological upgrading and the country's rapidly advancing AI capabilities....