US equity underperformance, driven by policy concerns and tech spending, offers a rare opportunity for global markets to narrow the valuation gap.

The first two weeks of Trump's presidency have featured numerous policy announcements including tariffs, immigration enforcement, and a deregulation agenda that could boost business confidence. While market reaction has been muted so far, we are closely monitoring the situation for any potential negative impacts from future policy decisions.

Strong US corporate earnings outlook amid stable rates could lead to converging market returns, despite various policy and economic risks.