Perspectives Investment Trends in Focus: AI, Asset Allocation and Adaptation
Oct 9, 2025
Michelle Shanley, Global Head of Strategic and Key Accounts at MSCI, shares insights on the current investment landscape shaped by the great wealth transition. They discuss the rising demand for personalized, tech-driven solutions and the shifts in client preferences away from heavy U.S. exposure. The conversation explores gold's resurgence and China's stock market rally, alongside the ongoing impact of AI on U.S. market valuations. Shanley also addresses the challenges of democratizing private markets and the crucial need for investor education amid changing dynamics.
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Unusual Q3 Winners
- Gold was the top-performing asset class last quarter, up over 13% and 40% year-to-date.
- China led stock markets, rising ~22% last quarter and ~45% year-to-date, surprising many investors.
Clients Torn Over U.S. Concentration
- Clients worry about concentrated U.S. exposure but hesitate to reduce it because of tech leadership.
- Many are tactically diversifying to developed non-U.S. markets while watching China opportunistically.
Why U.S. Mega Caps Outperformed
- U.S. mega caps outperformed because they delivered exceptional real metrics, not just lofty valuations.
- Metrics include doubled sales per employee, dominant R&D growth, and widening profitability versus peers.