The US-led global order of Pax Americana is being rebooted by the Trump administration and replaced by a multipolar world.
A more fragmented and regional world challenges previous global investment paradigms – and increases the need for active and forward-looking capital allocation.
As passive investment continues to rise, market concentration and high valuations are expected to increase, leading to potential risks when trends reverse.
Equity markets globally reacted abruptly on Monday, 27 January, due to the introduction of the DeepSeek language model.
This paper discusses how passive investment strategies have driven the market narrowness and increased equity markets’ price inelasticity.