The Cost of Capital May Be Changing

While investors remain focused on geopolitics, Federal Reserve policy, and artificial intelligence, a more consequential story may be developing beneath the surface. Japan’s gradual move away from ultra-loose monetary policy could reshape global capital flows, influencing Treasury yields, equity valuations, and the outlook for gold. As markets adjust to shifting liquidity conditions, the cost and availability of capital may become one of the most important drivers of portfolio returns in the months ahead.

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