The US stock market, typically considered the engine of the global economy, has struggled to find its footing through the first months of 2026, even as the rest of the world has surged ahead. As a result, US stocks are off to their worst start of the year since 1995 against the global market, according to data from Goldman Sachs. While the S&P 500 (^GSPC), tracking the largest US companies, has fallen by 1% since the start of the year, an index tracking market returns throughout the rest of the global ...

Core Viewpoint - Gold continues to play a significant role in investment portfolios as a hedge against volatility and inflation, especially in the context of geopolitical tensions and economic uncertainties [3][4][19]. Gold as an Investment - Gold is viewed as a long-standing monetary asset and a store of value, providing protection against inflation over the last 200 years [3]. - Current gold prices are trading above $2150 per ounce, reflecting its status as a safe haven amid global volatility [4]. - The recent sell-off in cryptocurrencies raises questions about their reliability as a safe haven compared to gold [3]. Market Dynamics - The U.S. 10-year bond yields approximately 4%, but inflation-adjusted yields are significantly lower, making stocks more attractive with a 4% to 5% earnings yield [5][6]. - International markets are currently cheaper than U.S. markets, presenting investment opportunities, particularly in defense spending due to geopolitical shifts [14][15]. Geopolitical Considerations - Geopolitical risks, including tensions in Europe and Asia, are influencing investment strategies, with a focus on defense technology and innovation [8][9]. - The Alpha Opportunities Fund is positioned to capitalize on these shifts, overweighting allies and underweighting vulnerable regions [7][9]. Future Outlook - The ongoing AI narrative and increased defense spending are expected to drive long-term market growth, with Japan identified as an underloved market with potential [18]. - Despite anticipated volatility, stocks are favored over bonds for long-term investment, with gold serving as a diversification tool [19].