1. US domestic equity funds are all-in on US stocks.

Cash levels in US equity funds fell to 1.1%, an all-time low.

There is barely any cash on the sidelines.

2. Japanese stocks are set for structural and cyclical lift.

Even before Takaichi’s resounding victory, growth in 2026 was expected to run above trend. The prospect of targeted fiscal spending introduces upside risk to those forecasts. Indeed, faster-moving EPS estimates have already risen as markets have gained confidence in the prime minister’s ability to deliver growth-positive policies.
That outlook is reinforced by an emphasis on strategic industrial policy. Seventeen sectors have been designated for investment, including AI, semiconductors, aerospace and defence. This targeted approach supports medium-term productivity and strengthens Japan’s competitive position in key global supply chains.

3. "Gold is money. Everything else is credit."

China is pivoting away from the dollar into gold.
Central banks are returning to "real" assets as a hedge against geopolitical volatility.

4. Europe’s reliance on American gas.

America’s share of the EU’s LNG imports jumped to 60% in the third quarter of last year, from 28% in the same period of 2021.
Swapping out Russian pipeline gas for U.S. LNG made sense at the time, as building gas terminals to receive supercooled gas cargoes was the fastest way to solve the energy crisis. The EU also took it for granted that the U.S. was a reliable ally.
But President Trump’s threat to take Greenland has shaken Europe.
Reducing reliance on fossil fuels looks like Europe’s best shot at saving its domestic manufacturing and stopping other governments from pushing it around.
The EU just reached a “major tipping point” in its shift to cleaner domestic energy, says Beatrice Petrovich, senior energy analyst at think tank Ember. Last year, wind and solar generated more electricity than fossil fuels for the first time in Europe.

5. Europe is the land of underappreciated AI adoption exposure which continues to broaden.

According to a survey from MS, 37% of European companies are expected to reduce headcount on the back of AI adoption.

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