Matthew Strachan

An interesting start to the year has given markets reason to reconsider the accepted wisdom of 'US exceptionalism'. The shock announcement of near AI equivalence from DeepSeek in China, at a fraction of the cost, has shaken assumptions of Western supremacy and associated capital spending. The threat of tariffs as an economic policy tool may be more real than just a negotiating tool. And finally post WWII institutions, such as NATO and the World Bank, designed to ensure peace and economic stability, may not have the US backing always presumed.

Uncertainty is elevated, the risk of something going wrong is heightened and stretched valuations look vulnerable. However, many valuations are not stretched and we remain fully invested but deliberately diverse, with a view to being more actively invested than passively.

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