Year-to-date performance shows end of US exceptionalism with Asia outperforming.
Joumanna Bercetche
Anita Krishnan
Asia leading in 2026, not China. Japan up 7-10% expected due to reform policies, technology, robotics, and controlled inflation.
Asks if Japan bullish view depends on stability in JGBs and yen.
Joumanna Bercetche
Anita Krishnan
Everything needs to hold together: wage growth, rate hikes, inflation control, JGB stability, yen in a sweet spot.
Asks about AI trade themes: memory chip shortage and software service disruption.
Joumanna Bercetche
Anita Krishnan
In S&P 500, service subset indexes (financial, data analytics) down 25%. Real assets and memory chips (Samsung, Micron) up. Micron spending $200B on capacity affects larger companies like Apple.
Anita Krishnan
Service sector seeing big fallout from AI like Anthropic's Claude providing legal, financial, healthcare services.
Asks about rotation in US economy, noting energy outperforming consumer discretionary.
Joumanna Bercetche
Anita Krishnan
Rotation is within technology itself. US companies remain integral; 50% of Nasdaq revenues from overseas. Shift is to emerging markets, defense, healthcare.