Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Banking on America: Foreign Demand for U.S. Securities Remains Robust: At the end of Q3 2024, foreign ownership of U.S. securities hit a record high, roughly doubling in the past decade alone which is another way of saying that foreign investors continue to play a critical role in U.S. capital markets.
  
  
• Market View — Taking Stock of Some Key Lessons of 2024: The clearest takeaway from a portfolio positioning standpoint remains that the U.S. has proven it’s the most resilient, dynamic economy globally, with strong earnings fundamentals, therefore rationalizing the U.S. as our preferred Equity region relative to the rest of the world.
  
  
• Thought of the Week — Bitcoin, the Magnificent 7, Bonds and Hong Kong: Taking Stock of the Leaders and Laggards of the 2020s: Count a global pandemic, the largest armed conflict in Europe since World War II, a 40-year high in U.S. inflation, and the rise of generative Artificial Intelligence among reasons why we’ve called this period the “Roiling ‘20s.”