Operating a financial consultancy business is challenging. Balancing client service, developing effective strategies, navigating volatile markets, and handling administrative tasks can be overwhelming, even for the most resilient professionals.
Today’s coffee session with my team was vibrant and engaging. The meeting began dynamically, with team members from diverse backgrounds and expertise exchanging ideas on various issues. They are based in different locations with different time zones.
We discussed many topics, including how climate change is intensifying the impact of extreme weather. Indeed, May marked the Earth’s 12th consecutive month of record-breaking temperatures, with India blowing past 50°C last month with nearly 100 deaths recorded.
In our work, we pride ourselves on a “go anywhere” investment approach. One team member is convinced that better days are ahead for active investors who remember the virtues of global diversification. Another highly experienced partner shared tips on managing difficult people in our show business.
Global risk assets have been in an uptrend benefiting from several positive factors such as rising corporate profits on Wall Street, moderating inflation, an anticipated easing cycle by the Fed, historically low market volatility, a probable soft economic landing, and yes, the AI-driven rally.

Hilariously, one partner pointed out that nobody wants to be left out. Evercore ISI has raised its S&P 500 target to 6,000 from 4,750, while Goldman Sachs and Citi have increased their year-end targets to 5,600 from 5,200 and 5,100, respectively.

Further upside is likely given the accelerating liquidity. In simple terms, the global banking and financial market systems rely on leverage. When there is plenty of liquidity, borrowing for spending and investment becomes easier, leading to a rise in asset prices. Conversely, when liquidity decreases, it can trigger or worsen market downturns.
Even though a big “mystery” has been uncovered, nobody seems to care. Well, the Fed will cut rates just a single time in 2024 according to the new dot plot. Speaking later to reporters, Jerome Powell indicated most officials did not change their projections following a remarkably favorable read on inflation.
Many other companies that we track on our radar have not experienced substantial appreciation this year and will contribute to sustaining the market rally. Still, the bad news is that another pullback is expected in the short term. Markets are discounting mechanisms, and we need to listen to them.
Stocks are not the only asset class that have soared this year, cryptocurrencies are also experiencing a huge surge. Bitcoin has long been regarded as a highly volatile asset. New assets generally require time for price discovery, maturation, and eventually, stabilization into lower volatility.

Even gold experienced significant volatility when the US abandoned the gold standard in the 1970s. To sum up brilliantly, the entire space is still in its early stages, with mass adoption yet to come.
Everyone thinks of themselves as contrarians, but truly contrarian investments are hard to pull off psychologically. Being in the crowd is validating while going against it is isolating. What does it mean to be contrarian today? I offered a number of “mind-blowing” opportunities in the discussion.
Another partner just bought a brand new BYD model for her daughter, a much better choice than Tesla. Chinese manufacturers are churning out more than half of all the EVs produced anywhere. Brands like BYD and Geely are moving around the world. You won’t find them in the US because of poor geopolitical relations and a 100% import tariff.
There are many more things that I won’t cover here. The session lasted a little over two hours and also served as a valuable opportunity for relationship-building.