After spending a week on the road with Economist Andrew Hunt, one thing was clear: there’s a lot going on but it’s not all doom and gloom. As always, his sessions weren’t your standard macroeconomic updates. They offered depth, some historical context, and a few near-term signals to watch out for. 

The Big Topic? The U.S., of Course
Most of the client questions—and much of Andrew’s presentation—focused on the U.S.. Trump and the broader policy direction dominated the agenda. And the takeaway? Many of the administration’s ideas may have a solid rationale behind them. The problem isn’t always the “why,” it’s the “how.” Implementation has been messy, and that’s what’s feeding into current uncertainty.

Two Economic Models, One Global System
One of the more interesting pieces was a refresher on the tension between Western and East Asian economic models—profit maximisation vs employment maximisation. It’s not that one is right and one is wrong, but mixing them has caused distortions. That imbalance helps explain what’s happened to the industrial base in places like the U.S. and parts of Australia.

Trump’s efforts to rebalance through tariffs might not be misplaced, but fixing this overnight isn’t realistic. It’s a long process, and what we’re seeing now is more disruption than resolution.

Repatriation Trade: What Happens When the Usual Playbook Doesn’t Apply?
Usually, global uncertainty sends money flowing into the U.S. dollar. This time, it’s different. Capital is being pulled back into home markets. That’s the “repatriation trade”—and it’s a sign that trust in the U.S. as the default safe haven might be fading. Whether that’s a blip or the start of something bigger is still playing out.

A Wild Card: Stablecoins and New Sources of Liquidity
One of the more speculative, but fascinating ideas raised was around stablecoins and crypto-backed reserves. The theory that crypto markets—particularly stablecoins—could be used as a modern liquidity tool. In a world where traditional fiscal levers are harder to pull, this could act as a kind of shadow reserve system.

It’s early days, but if this idea gains traction, it might offer policymakers a way to plug funding gaps or inject liquidity without going through traditional monetary channels. That said, it also introduces new risks—and it’s not clear how the bond market will respond. 

What It Means for Portfolios
From an asset allocation perspective, these developments broadly support a more globally diversified approach. Markets outside the U.S.—particularly in Europe, Japan, and emerging economies—continue to offer more compelling valuations. Many high-quality companies in these regions are trading at a significant discount relative to similar names in the U.S..

That valuation gap alone has been a reason to look beyond the U.S., but the current wave of policy-driven uncertainty may provide an additional catalyst. If global capital continues to rotate or repatriate away from the US, relative performance could start to shift. For investors already positioned this way, it’s a setup that may begin to work in their favour.

If you’d like to dive deeper into Andrew’s full session (and hear it all in his words), let us know. We’d be happy to share the full recording.