While the credit rating downgrade underscores mounting fiscal risks, structural confidence in the U.S. persists. We advise clients to monitor policy developments closely and consider a diversified allocation that balances duration risk, USD resilience, and safe-haven exposure.

Hanxiang is a strategic asset in Taiwan’s defense-industrial base with growing international presence. Despite short-term aerospace constraints, long-term positioning in UAV tech, composite materials, and energy storage aligns with dual-use sector trends. Ongoing diversification and industrial partnerships underpin the case for sustainable upside.

A divergence is emerging between resilient trade data and weakening domestic sentiment across markets. Headline-driven volatility (tariffs, elections, policy uncertainty) now outweighs traditional data flows. Investors should emphasize high-ROIC compounders, selectively overweight defensive cyclicals, and pursue FX-hedged strategies—especially in export-sensitive markets like Taiwan and South Korea. Watch for bond market cues ahead of the next Fed meeting.