Markets happen when you’re making other plans. This was true again last week as confrontation with Iran, instead of caving US markets, supported them. Equity indices approached record highs, and the US dollar strengthened, at least for a time. We expect inflation and rate uncertainty will continue to weigh on investors. 

Nevertheless, April’s “sell America” motif has shifted. “We didn’t sell anything,” one experienced investor told FT’s Katie Martin. “The world is overweight US for a reason.” That again puts the spotlight on what private markets can do in an ever-changing macro landscape. 

At the bank-replacement end of the market, large asset managers see convergence as a trend. One example is the confluence of channels: retail and institutional. Then there’s the blurring of assets: public and private. And finally, as distribution from managers to investors becomes more sophisticated, differences in asset liquidity should narrow as well.