What’s been driving the recent mishap in US equities?
The last three years have been unusually stable; we need to get used to more frequent equity drawdowns as global liquidity is withdrawn. To decide how to react each time, it's important to assess the drivers and whether it’s the beginning of something more sinister or a buying opportunity. Here’s an example of how we do that in practice and why we see US inflation as a key risk for global markets.
The world may be caught in a ‘Thucydides Trap’, where US leadership is challenged by a rising power – China. This creates many challenges for investors. But what could it mean for the technology sector?