Under the Banyan Tree by HSBC Global Research

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.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

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.
INSIGHT

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.
INSIGHT

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.
Get the Snipd Podcast app to discover more snips from this episode
Get the app