During the recent brief holiday respite, it was most interesting to discuss the economic and political shifts shaping our increasingly multi-polar world with some leading business personalities in Asia.

The shifting perception of the United States is both fascinating and sobering. Once seen as the “shining city on a hill” the US is now increasingly being described by some as resembling a giant emerging market. It has in fact spawned a new term “the emification of the US”.

This characterisation profoundly surprised me when I first heard it expressed. When pressed for an explanation, concerns about political instability, societal polarisation and the weakening of institutions were frequently cited. These apprehensions are profoundly influencing sentiment and driving the conversation around alternatives such as the BRICS bloc which many ASEAN leaders view as a compelling counterbalance to a US-centric global system.

Of necessity, this is also sparking a re-evaluation of global investment strategies by many investors. These developments call for far more than the oft-promoted general advice concerning diversification and holding for the long term. Portfolios must be actively positioned and this means:

- Reassessing exposure to US assets with a critical eye on political and fiscal risks.
- Diversifying beyond traditional safe havens by exploring emerging markets and new alliances like BRICS that offer alternative growth drivers.
- Incorporating non-correlated assets such as gold, commodities, cryptocurrencies and real assets to hedge against rising global volatility.
- Monitoring closely the shifts in global capital flows as the dynamics of the multipolarity play-out potentially favouring regions such as Asia or the Middle East.

Flexibility, foresight and a willingness to embrace change will define the successful investor of the future as we reconcile the tensions between the historical narratives and emerging realities.

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