Persistent inflation driven by geopolitical shocks like the Strait of Hormuz closure.
A hawkish pivot by the Federal Reserve, leading to higher interest rates and tighter financial conditions.
Heightened U.S.-China tensions creating an unpredictable operating environment for multinational corporations.
Potential for Japanese capital repatriation to destabilize global bond markets and drive yields higher.
Opportunities Identified
Diversifying AI-related investments into Chinese tech companies, which are perceived as having more attractive valuations and higher capital efficiency.
A potential U.S.-China agreement on rare earth elements could serve as a major positive catalyst for the technology sector.