The global balance of power is shifting
As 2024 draws to a close, the world economy is enjoying a moment of relative stability. Post-pandemic inflationary pressures have eased. Central banks, after aggressively tightening, are cautiously lowering interest rates, reducing the spectre of a policy-induced recession. Cross-asset volatility is subsiding, and key measures of financial stress remain reassuringly low. But this sense of calm conceals areas of vulnerability. Government deficits have widened alarmingly and sovereign bond markets are reflecting growing unease over borrowing levels. New technologies are redrawing the investment landscape, creating a new set of winners and losers. Financial asset valuations, particularly in the United States, remain...