

Is a generational investment shift upon us?
Sep 11, 2025
Fred and Herald delve into a potential shift in global investment trends, focusing on Asian markets gaining traction as investors look beyond the U.S. They discuss how a weakening dollar and rising national debt are prompting diversification into Europe and Asia. The contrasting debt levels between the U.S. and Asia highlight Asia's appeal for risk-averse investors. Emerging opportunities in Asian equities could reshape growth strategies, as capital flows evolve, offering a fresh perspective on investment dynamics.
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Beginning Of A Global Rebalancing
- Global capital has flowed heavily to the US for decades but recent months show a diversification trend away from dollar assets.
- Harold van der Linde suggests this feels like the start of a multi-year rebalancing, not a short blip.
Dollar Weakness And Debt Risk
- A weakening US dollar and rising concerns about US debt are driving investors to consider non-dollar assets.
- Fred Neumann warns higher US debt servicing raises required returns and could make non-US markets relatively more attractive.
Capital Flows Affect Cost Of Capital
- Massive US capital inflows have lowered US cost of capital and concentrated liquidity there.
- Harold van der Linde notes reallocating that capital to Asia would reduce Asian funding costs and boost local liquidity.