• Currently around 80% of all chips in the world are made in Northeast Asia. President Biden is trying to change this with his plan for $50 billion in spending on chip research. Until that happens however, the price of cars, which are heavily reliant on chips, may continue to rise, while the availability will decline. Consequently, used-car prices have risen by around 20% in the first half of 2021.
• In the decade following the Great Financial Crisis, the emerging-market stock index rose just 8% compared to the developed nation benchmark, which more than doubled.  Some analysts believe this trend will reverse soon driven by the fact that commodity prices have risen and the amount of liquidity provided by the Fed, which was one of the key drivers of the US’ outperformance over the past decade, will decrease.
• As the Fed ultimately tapers their bond purchases, U.S. investors fret it will lead to a rise in yields. They still remember 2013, when yields jumped from 2% to 3% in roughly four months. Yet they forget that in 2013, foreign investors only accounted for around 28% of purchases in the 10-year auctions, whereas today it is closer to 77%. This additional demand could prevent the “taper tantrum” many expect.
• Aided by historically low interest rates, there is a newfound focus on re-onshoring manufacturing and building clean-energy infrastructure. Many countries are moving away from monetary policy measures towards fiscal policy to kickstart infrastructure, energy and other public works. Case in point, the US Senate recently passed a $550 billion infrastructure package and the UK Prime Minister Johnson is calling for a £600 billion infrastructure bill. This bodes well for construction-related stocks.