Core Viewpoint - Global monetary easing policies are driving a sustained risk appetite until the end of 2025, with investors pursuing returns in gold, stocks, and credit markets [1] Group 1: Market Performance - Gold has surged by 53% this year, stocks have risen by 21%, and Bitcoin has increased by nearly 15% [2] - Investment-grade bonds have appreciated by approximately 10%, while high-yield bonds have gained 9% [2] - The US dollar has declined by 8%, and oil prices have dropped by 16% year-to-date [2] Group 2: Risk Factors and Sentiment - The "tail risks" that were anticipated for 2025 have not materialized, contributing to a stable market environment [2] - US Treasury volatility has decreased to its lowest level since 2021, and a trade truce between the US and China has been reached [2] - The Bank of America Bull & Bear Indicator has slightly increased from 6.2 to 6.3, reflecting a general strengthening of global stock markets and an improved credit environment [3] Group 3: Fund Flows and Positioning - Recent fund flows indicate $36.5 billion has entered cash, $17.2 billion into stocks, and $17 billion into bonds, while gold has seen an outflow of $7.5 billion [3] - The Japanese stock market has experienced its largest capital inflow since April, while materials stocks have faced record outflows [3] Group 4: Future Outlook - Risk appetite is expected to persist until inflation shows a significant rebound, with a forecast of 81 additional rate cuts globally by 2026 [4] - The strategist warns of potential "bubble signs" in risk assets and suggests that excessive confidence in AI-driven stock performance may be misplaced [4] - Recommendations include gold and Chinese stocks as hedges against speculative excess, with caution advised if key market indicators show sharp reversals [4]