We see signs of change among international investors and a growing reassessment of how global equity portfolios are constructed. The trigger is not a single event, but a combination of geopolitical fragmentation, heavy concentration in AI-related stocks, and a continued US dominance in global indices.

Global manufacturing has entered a new regime. Electrification is intensifying as a structural driver of energy demand, industrial investment and geopolitical leverage – reshaping not just energy markets, but industrial power.

We have identified four pivotal changes that point to an emerging change in market trends with investors refocusing more on fundamental and structural growth. These four changes are a revival of quality stocks, broadening out of the AI theme, the rise of China and India and the peak of US equity market capitalisation dominance.

As we embark on a new year , Bo Knudsen, our CEO and Portfolio Manager, shares his perspectives on recent market developments and where he sees opportunities as the global investment landscape broadens.

Since 2020, five major shifts have led to the current K-shaped growth structure of the global economy and equity markets, with huge divergence between winners and losers.