Tian Yang

In the context of the "Sovereignty" and "Technology Race" themes, Tian highlights "government consulting and tech consulting" as the most interesting sub-sector where valuations are reasonable. As the US moves toward "National Mobilization," the government must implement complex dual-use technologies. However, the government seeks to reduce direct headcount (DOGE efficiency), necessitating heavy reliance on private consultants to execute these tech upgrades. LONG. aggressive government spending cuts (DOGE) that target contractor waste specifically.

Brazil was a top pick for the year but "got hit on this news" (geopolitical shock). Tian asserts, "I still think over the balance of the year... it still makes sense." The sell-off is viewed as a short-term political/risk adjustment rather than a fundamental break. The core thesis of "EM over DM" and commodity support remains intact once the immediate war panic subsides. LONG (Buy the Dip). Escalation of global conflict driving a sustained flight to the US Dollar, crushing EM currencies.

Tian argues that "if gold can even just stay above 5,000... [miners are] way more compelling now than the gold outright." While physical gold has structural tailwinds as a neutral reserve asset, the miners are trading at valuations that imply much lower gold prices. This creates a valuation gap where miners offer significant leverage to the metal's price stability, even without further rallying. LONG. Rising input costs (energy/labor) compressing miner margins despite high gold prices.

The capital cycle score for US Regional Banks was bad for years but has "started to inflect a lot higher" recently. Banks have been cautious (high loan loss provisions), yet ROE has been steadily improving. This divergence—high caution vs. improving returns—signals a classic capital cycle turn where competition is low, and profitability is set to surprise to the upside. LONG. A resurgence of commercial real estate (CRE) defaults or a "higher for longer" rate environment breaking credit quality.

In the context of the "Sovereignty" and "Technology Race" themes, Tian highlights "government consulting and tech consulting" as the most interesting sub-sector where valuations are reasonable. As the US moves toward "National Mobilization," the government must implement complex dual-use technologies. However, the government seeks to reduce direct headcount (DOGE efficiency), necessitating heavy reliance on private consultants to execute these tech upgrades. LONG. aggressive government spending cuts (DOGE) that target contractor waste specifically.

Tian notes that high-quality businesses with "network effects" (specifically mentioning Visa, Mastercard, and MercadoLibre) have been "caught up in the sell-off" and "de-risking takes everything down with it." The market is indiscriminately selling growth. Investors should distinguish between "too hard" SaaS companies and businesses with entrenched network effects or regulatory moats. MercadoLibre specifically was cited as a high-quality business that "tanked" despite strong fundamentals, offering a dislocation entry. LONG. Continued anti-tech sentiment or specific regulatory crackdowns on payment duopolies.

Tian notes that high-quality businesses with "network effects" (specifically mentioning Visa, Mastercard, and MercadoLibre) have been "caught up in the sell-off" and "de-risking takes everything down with it." The market is indiscriminately selling growth. Investors should distinguish between "too hard" SaaS companies and businesses with entrenched network effects or regulatory moats. MercadoLibre specifically was cited as a high-quality business that "tanked" despite strong fundamentals, offering a dislocation entry. LONG. Continued anti-tech sentiment or specific regulatory crackdowns on payment duopolies.

Tian notes that high-quality businesses with "network effects" (specifically mentioning Visa, Mastercard, and MercadoLibre) have been "caught up in the sell-off" and "de-risking takes everything down with it." The market is indiscriminately selling growth. Investors should distinguish between "too hard" SaaS companies and businesses with entrenched network effects or regulatory moats. MercadoLibre specifically was cited as a high-quality business that "tanked" despite strong fundamentals, offering a dislocation entry. LONG. Continued anti-tech sentiment or specific regulatory crackdowns on payment duopolies.

The asset allocation engine is "rotating to healthcare" as it maintains a "cyclical value piece" but adds a "slightly more defensive, slightly less correlated exposure." As the market digests the energy shock and potential volatility, Healthcare offers a defensive buffer with reasonable valuations compared to the "SaaS apocalypse" seen elsewhere. It acts as a ballast in a portfolio transitioning away from pure cyclical energy exposure. LONG. Regulatory changes or political risk in an election year (2026 midterms).