Emerging Markets and International Investments - Emerging markets and international investments are experiencing renewed interest after a decade of underperformance, driven by a weaker dollar, easing Federal Reserve policies, and a rebound in China [2][3][4] - Advisors had a roughly 2-3% exposure to emerging markets, significantly underweight compared to the MSCI recommendation of approximately 12% [3] - A counter-trend rally in the dollar and ongoing uncertainty around tariff negotiations could derail investor enthusiasm for international markets [5][6] - Investors are adopting more creative strategies in approaching emerging markets, moving away from cap-weighted approaches towards active or factor-based strategies [7] - Greece and Argentina are highlighted as specific countries with significant value opportunities due to political and fiscal turnarounds [8][9][10] - Greece's market trades just above book value after running up about 70% year-to-date, with a 6% dividend yield and 10% earnings growth [9] - Argentina's market cap to GDP is at 11%, compared to 38% for Brazil, 45-47% for Chile, and close to 200% for the US [13][14] Energy Sector and Infrastructure - Investors are shifting from traditional energy ETFs like XLE, which experienced over 7 billion USD in net outflows year-to-date and over 13 billion USD in net outflows over the past three years, towards energy infrastructure [22] - Energy infrastructure strategies, including AMLP, have seen 16 billion USD in net inflows year-to-date, with AMLP alone receiving 950 million USD in net inflows in 2025 [23][24] - The utility sector, represented by XLU, has seen 27 billion USD in net inflows year-to-date [26] - The US needs to produce about 45% more electricity than it produces today by 2040 after almost two decades of stagnant demand [28]

I ask you whether this changing up of the calculus is actually what global investors want to see. How difficult is it to calculate what the US government's going to do next. Well, it's very difficult indeed, because the speed at which things are coming, some news are usual, some news are unusual. So the speed at which things are coming to investors attention is just went out of control.And some of the news do have positive implications for our companies. But there is still the risk that the US government's ...

Market Overview & Strategy - The market has largely priced in positive news, suggesting limited further upside and increased downside risk if earnings disappoint [1][7] - Strategy Asset Managers favors international markets due to the depreciating dollar, creating advantages for certain stocks [2] - A weak dollar is generally beneficial for US net exporters and should aid international stocks through translation effects [6][8] - The firm advises clients to look beyond short-term market noise and maintain a confident long-term outlook [5] Investment Opportunities - Marcato Libre, an e-commerce and fintech company with exposure to Argentina, is favored due to growth potential in Latin America, which is considered greater than in Europe [3] - The healthcare sector, particularly biotechnology and pharmaceuticals, is highlighted as a key area of focus [13] - Eli Lilly (Lily) is favored for its potential in the GLP-1 drug market, targeting the billion people globally who are obese [13] - Next-generation vaccines and personalized cancer vaccines represent exciting advancements in biotechnology [14] Monetary Policy & Economic Factors - The market anticipates the Federal Reserve to implement rate cuts, potentially starting towards the end of the year [10] - The high US deficit necessitates eventual rate cuts, although the timing remains uncertain [10][11]

International Market Performance - International markets have underperformed for an extended period, prompting consideration of potential investment opportunities [1] - The S&P 500 has been the worst-performing market year-to-date, underperforming both core emerging and developed markets [2] - A weaker dollar (down more than 10%) and shifts in international allocations away from the S&P 500 contribute to this deviation [3] - There's increasing discussion in Europe and the UK about redomiciling retail and retirement assets to reduce US investment [3] - International diversification can be beneficial, especially for portfolios heavily biased towards US investments [5] US Market Analysis - The US market is considered the most liquid, with a significant number of large global companies domiciled there (21 of the 25 largest) [7] - US exceptionalism may not be over, and significantly shifting investments to countries like Germany could be a tactical mistake [9] Investment Strategy - It's not advisable to abandon the S&P 500 entirely for international markets [4] - Investing in Europe might be a bet on cheap beta or a specific factor [8] - Over 95% of international markets are small to mid-cap companies (SMID) [7]

Market Performance - Aurora Cannabis shares experienced a decline [1] - The company anticipates "temporary declines" in its international markets, including the U S [1]

Job Market Analysis - Private job ads showed an average of 127,000 jobs per month over the last two years [2] - Healthcare and social assistance accounted for 80,000 jobs per month, representing 63% of all job growth in the last two years [3] - Healthcare sector employs 17% of the workforce [3] - Healthcare job growth faces significant risks due to potential changes in Medicaid, Medicare, NIH funding cuts, and drug pricing reform [4][5] - It is challenging for healthcare jobs to continue supporting the entire economy [6] Investment Strategy - A significant risk factor exists within the US economy [7] - International markets offer a way to sidestep the risk present in the US [7] - Tariffs are benefiting some high-quality non-US companies by reducing competition from US multinationals [8] - Dollar weakness provides an additional tailwind for international investments [8] - International markets offer a valuation discount, making them a value play [8] - Bankree Capital Advisers launched an international ETF (BCIL) [8]