Equities, our investment approach.

For almost three years now, AI has single-handedly dominated financial news headlines, generating a flurry of content and analysis. But never has it been so difficult to make a pragmatic assessment of its potential and its advancement.
The confusion today stems from three factors: first, technology is developing at a startling rate. I still remember, back in 2019, reading Architects of Intelligence: The truth about AI from the people building it, a collection of 23 lengthy interviews with the most eminent AI specialists at the time. The recent breakthroughs have undeniably taken the world by surprise - including executives at Meta and Microsoft, and even Elon Musk.

The first weeks of Donald Trump’s mandate are unfolding at a staggering pace and in chaotic fashion, leaving observers increasingly stunned. And yet, events are proceeding as planned according to his programme. Donald Trump is doing what he said he would.

•    Hopes of a resolution to the Ukrainian conflict buoyed European equities at the beginning of the week, but Donald Trump's tariff announcements and criticism of Zelensky then caused European and Asian stocks to fall.
•    Donald Trump threatened to escalate the trade war with additional taxes on cars, semiconductors and pharmaceuticals.
•    The FOMC minutes revealed concerns that Donald Trump’s trade and migration policies might fuel inflation.

Benjamin Melman, our Global CIO AM, shares his insights for the upcoming months, focusing on major asset classes, essential themes, and priority regions as we enter the new year.