europe

Higher Risk Premium on U.S. Assets and Fiscal Math

For the past fifteen years, U.S. assets are the only thing that matters. Foreign investors require little risk premium for investing in U.S. government bonds, which was and still is de facto safe-haven assets, and bid valuation for U.S. stocks higher. As we will discuss in the second part of this piece, comparable sector valuationContinueContinue reading “Higher Risk Premium on U.S. Assets and Fiscal Math”

U.S. Economy and Financial Market: Mean-reversion to Trend

For several years now strategists and geopolitical analysts have been talking about the changing global order. But events over the past one month have accelerated this discussion, with global investors selling U.S. equity, bonds, and the greenback. As of the time of writing (April 22, 2025), international equity – proxied by MSCI EAFE – hasContinueContinue reading “U.S. Economy and Financial Market: Mean-reversion to Trend”

Global Growth Convergence in the Making (Part II)

One of the themes that could be observed in both the global equity and bond market is the convergence between U.S. and the rest of the world. Following two years of strong U.S. economy and weak growth in the rest of the world, we have seen U.S. exceptionalism start to diminish amid continued softening inContinueContinue reading “Global Growth Convergence in the Making (Part II)”