We are in a once-in-a-lifetime AI CapEx cycle. This has led to global growth accelerating with strong US growth above trend. Recent volatility was a healthy reset, not a major correction. IPO issuance is returning to normal days after years of decline. Buybacks in the US have come down but still outstrip supply. Asia, especially North Asia, sits at the heart of global AI CapEx.

The size of IPOs as a percentage of GDP is not that big. The anomaly was the past few years of low issuance. High rates are changing financing dynamics. This is a healthy reset and probably a good opportunity to add exposure.

It's not a major correction. On a long-term chart it barely shows. Could we see more correction? Yes. The question is whether you panic and sell or see an opportunity to buy. This is a once-in-a-lifetime CapEx cycle that still has legs.

That day might have been a good day to add to some AI CapEx cycle exposures.

All stars are aligned for financials. Structurally, rates are higher than zero, deregulation benefits the US, and Europe is reversing its regulation phase. Cyclically, curves are steepening, lending cycles are improving. Corporates are already releveraging. Financials were the best-performing sector on Friday/Monday.

In Japan, steeper curves and improving lending cycles. Households could start to delever up again, boosting financials.

China has been strategic in diversifying energy resources. They may find a new export channel in exporting green energy know-how and energy resilience technology. Chinese exports have been very strong.

Other countries dependent on energy imports might look to China for green energy solutions. This could be an additional export growth channel.

Bonds have had poor returns for 4-5 years. We have had very low fixed income exposure for 5 years and are not increasing it. Instead, we are in alternatives, commodities, real assets like copper, uranium, and energy equities linked to green energy.

We could see additional years of poor bond returns. From a multi-asset perspective, the portfolio has shifted more towards real assets in recent years.

Concentration is everywhere, even more in emerging markets than the US. In China, we prefer the mid-cap space (CSI 500/China A) as government policy is pushing flows there via pension funds and wealth management. If Chinese consumption rebounds with lower oil prices and more green shoots in property, mid-caps could benefit.

There have been some early signs in the property market. Let's wait and see how this plays out.