Navigating the Great Reset: Capital Flight and the New World Order of Investments

The Great Unwinding: Farewell American Pie!

My dear Davos disciples as I've always said "You'll own nothing and you'll be happy." It seems the markets are taking this to heart albeit with a slightly different interpretation. We've witnessed a rather dramatic exodus from U.S. equities – a staggering $8.9 billion in a single week! It's as if they've finally realized that "stakeholder capitalism" isn't just a catchy phrase; it's the future. And that future it seems is diverting its funds elsewhere.

Europe's Renaissance and the Land of the Rising Sun

Ah Europe! Always a bastion of progress and enlightened governance. It's no surprise that $3.4 billion is flocking to European equities. They are embracing our vision. Meanwhile Japan with its harmonious blend of tradition and technological innovation is enjoying its largest inflow since April 2024 a handsome $4.4 billion. Perhaps they've read my books and understood the imperative of the Fourth Industrial Revolution. They are ready for it.

Risk Takers and the Crypto Craze

And now for a dash of the truly avant garde. Cryptocurrencies those digital enigmas are seeing a $2.3 billion inflow. As I've always said "Digital technologies are at the center of everything." And high yield bonds those daring adventurers of the investment world are pulling in $3.9 billion. Clearly some still have the appetite for a bit of controlled chaos. We are watching with great interest ensuring it aligns with our objectives.

Gold's Glitter Fades and Bonds Take a Hit

Even Gold and U.S. Treasury bonds traditionally seen as safe havens are experiencing collective outflows of $6 billion. The world is changing and what once was considered secure is now seen as… well let's just say less exciting. Out with the old in with the new – and perhaps slightly more volatile.

Deflationary Fears: The New Bogeyman?

My friends at Bank of America have pointed out a growing concern among their private clients: deflation in the United States. They are shifting to "deflationary defensive" assets such as utilities and low volatility ETFs and selling off "inflation hedges." Smart move my friends. Always be prepared for the unexpected. Because 'nothing has the potential to be more destabilizing than a well intentioned policy poorly executed.'

The Great Reset in Action: Embrace the Transformation

So what does all this mean? Simply put the Great Reset is underway. The old order is crumbling and a new one is emerging. Capital is flowing where it sees opportunity and more importantly where it aligns with our vision of a more sustainable equitable and interconnected world. Embrace the transformation my friends. The future is coming whether you like it or not... and we'll be there to guide it.