INSIGHTS

Renewed hostilities in the Strait of Hormuz are once again threatening the energy flows the global economy depends on — and oil prices are already responding.

Asia’s AI and technology sectors may create income opportunities, while a focus on dividends and cash flow can help balance growth potential with concentration and valuation considerations.

Small caps have outperformed this year despite the threat of higher interest rates, suggesting the rally is being driven by more than just diversification away from large cap tech stocks. Improving earnings expectations and a resilient U.S. economy support our view that small caps have further upside from here.

The war in Iran has increased volatility across fixed income markets, pushing municipal bond yields higher as investors reassess inflation risk, energy costs and the path of Federal Reserve policy. Even so, historically elevated municipal bond yields present a compelling opportunity for tax-sensitive investors.

AI investment enthusiasm is rising, but returns will vary widely. Long-term value is more likely where practical, commercially viable use cases are already beginning to emerge, says Walter Scott’s George Dent.

Semiconductor sector volatility remains high as investors weigh surging memory growth against questions over durability and valuation. Walter Scott’s Murdo MacLean breaks down what’s going on.

Walter Scott’s John Rae assesses outsourced drugs manufacturer Lonza’s role in the healthcare ecosystem.

Walter Scott’s John Rae outlines why the long-term case for food company Compass Group remains strong despite recent AI-driven market fears.

Checkpoints is a comprehensive monthly chartbook highlighting major top-of-mind themes that could shape financial markets in the near term. In addition to the broader macroeconomic discussion, Checkpoints delivers detailed views on major asset classes, including global equities, fixed income and real assets.

The U.S.’ extraction of President Maduro from Caracas on January 4 could alter the trajectory of geopolitics in the Americas.

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