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The US dollar’s dominance is fading in 2025 as rate cuts, ballooning deficits and reserve diversification erode its appeal. Investors can mitigate risks and capture opportunities by tilting towards the euro. WisdomTree’s currency exchange-traded products (ETPs) provide a straightforward way to position for this shift.
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The US dollar’s dominance is fading in 2025 as rate cuts, ballooning deficits and reserve diversification erode its appeal. Investors can mitigate risks and capture opportunities by tilting towards the euro. WisdomTree’s currency exchange-traded products (ETPs) provide a straightforward way to position for this shift.
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The “Mar-a-Lago Accord” is a speculative idea that the US may pursue a weak-dollar strategy to boost exports and reindustrialise. Unlike the 1985 Plaza Accord, global coordination now seems unlikely amid geopolitical tensions. If implemented, gold, silver, commodities, and high-dividend equities could benefit, but the policy remains highly uncertain.
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Japan's economy shows signs of stabilisation heading into 2025, with strong Q3 growth driven by services recovery, robust tourism spending, and targeted fiscal stimulus designed to boost household consumption and alleviate labour shortages. A weaker yen and corporate governance reforms have strengthened the case for investing in Japanese exporters.
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We are at a moment of peak uncertainty as we head into the final week of the US elections. Trump is favoured to win, but it is almost a coin toss. The election has the potential to significantly impact risk assets globally. Donald Trump’s policies vastly differ from Kamala Harris', which could have significant implications for the global economy.
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Equity markets have posted a strong first half performance in 2024. Continued earnings growth globally should lend a positive tailwind for a continuation of the rally. Yet global equity markets are not only concentrated by name, but also by sector and factor, opening up a panacea of opportunities.
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Recent market volatility caused a significant drop in Nikkei 225. Despite this, the long-term outlook remains positive. The sell-off is seen as a buying opportunity due to the Bank of Japan (BOJ)’s rate increase, stable economic indicators, and corporate governance reforms. Japanese equities fell due to liquidity, not fundamentals. A hedged-currency Japan portfolio is expected to outperform the S&P 500 over the next five years.
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