Decoding Software: Growth, Moats, and the AI Reckoning

The dollar appears to be under significant pressure, in our view. Not only in the near term, but also in the context of global investors’ strategic asset allocations. The only silver lining is that we do not believe that the dollar will lose its status as the primary reserve currency in the foreseeable future. Against this backdrop, we believe that the case for global diversification is as strong as it has ever been. Looking ahead, asset classes in the rest of the world — including non-US equities, European fixed income and emerging market debt — may stand to benefit from the ongoing pressures on the USD.

History teaches us that governments struggle to rein in liquidity once it’s been unleashed. We’re entering a new paradigm in which tangible fixed investment is replacing financial engineering. In this new environment, the disruption of profit pools may advantage active managers.

A review of the week’s top global economic and capital markets news