Markets sit at elevated levels, fuelled by optimism around artificial intelligence and the promise of lasting productivity gains. Yet beneath the excitement lies a complex mix of valuations, momentum, and risk – raising important questions about how investors can stay positioned if sentiment shifts.

This U. S. summer, a new investment frenzy – akin to the SPAC (Special Purpose Acquisition Company) exuberance of 2020/21 – has gripped Wall Street as companies transform their balance sheets into crypto vaults. And as September unfolds, the corporate dash into cryptocurrencies shows no signs of slowing.

CrossBorder Capital’s latest report by founder Michael Howell paints an ominous picture of a maturing global liquidity cycle, raising concerns that the U. S. Federal Reserve’s (the Fed) waning role in providing liquidity (the fuel for market and asset rises) has negative implications for markets and the U. S. economy.