Matthew Tan, Head of Asset Allocation at LGT Wealth Management, explains why investors must look beyond today’s geopolitical headlines and instead focus on a deeper, structural transformation reshaping the global economy. According to Tan, we are in a multipolar world - a shift that is already altering economic growth patterns, trade flows, and long‑standing macroeconomic imbalances.
Matt argues that while political uncertainty remains elevated, three major structural imbalances, China’s over‑investment, Europe’s reliance on global trade paired with fiscal restraint, and the United States’ chronic over‑consumption are beginning to reverse. As these adjustments take shape, he believes they will drive a significant recalibration across global markets.
Tan highlights three actionable takeaways for investors:
With China and Europe stepping up fiscal and consumer‑driven stimulus—while the U.S. enters a period of consolidation—Tan expects stronger long‑term growth outside the United States. Europe, Asia, and emerging markets stand out as regions with increasingly attractive opportunities.
Tan expects lower structural demand for the U.S. dollar and U.S. Treasuries, leading to a weaker USD and higher yields over time.
While the U.S. remains an essential market, he cautions against maintaining historically high levels of U.S. concentration.
“Should we be as over‑invested in the U.S. as we are today? I don’t think so.”
As the world transitions to a new equilibrium, volatility is likely to rise. Tan emphasises:
Failing to adapt, he warns, risks investors “missing the ball” as economic momentum and market leadership shift toward new regions and new engines of growth.
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