Global equity investing correlations between developed and emerging markets have tightened, suggesting converging growth expectations. This synchronization has lifted trade-sensitive sectors, with transportation and logistics equities seeing steady gains. Analysts warn that synchronized downturn risks may rise if global liquidity contracts. With global conflict and political change increasing market uncertainty, investing can feel risky. But avoiding investments altogether carries its own risk—your money could lose value over time. We had previously laid out scenarios to help guide us on a tactical investing horizon. Yet we think macro outcomes are likely more contained in the near term than in the long term. For that reason, we are now using scenarios to guide how we speak to a medium-term outlook in strategic allocations of five years and beyond. Mega forces are a key driver of asset allocation across tactical and strategic horizons – and highlight how the opportunity set is becoming more thematic in nature. In the global equity investing landscape, tech-heavy markets like South Korea’s KOSPI surged 3% this week, supported by upbeat export forecasts. Market strategists flag semiconductor shipment growth as a leading indicator for Q4 equity performance. Risk appetite rose despite caution around U.S. inflation prints due later this month.
