Sony Kapoor

The Case for a Historic Reallocation to Emerging Markets | Sony Kapoor Sony Kapoor on why global portfolios are dangerously overexposed to US assets, the generational opportunity in India, and whether AI will sustain American dominance or accelerate EM convergence.

hiddenforces.io/podcasts/the...

An astute analysis and a podcast well worth listening to.

The Case for a Historic Reallocation to Emerging Markets | Sony Kapoor Sony Kapoor on why global portfolios are dangerously overexposed to US assets, the generational opportunity in India, and whether AI will sustain American dominance or accelerate EM convergence.

12/ Full conversation with #DemetriKofinas on # HiddenForcesPod — link below.
We covered the dollar, India-China relations, the geopolitics of a multipolar world, and why the optimism you feel landing in Delhi is not just vibes.
hiddenforces.io/podcasts/the...

#EmergingMarkets #GlobalMacro #India

11/ The investment case in one line:

From a current 10–20% EM allocation, every risk-return argument points in the same direction — keep rebalancing — until you reach at least 50%.

That's a 10–30 year tailwind.

10/ The optimism gap is real and it's structural.

When people believe their children will have a better future, they support openness, trade, and growth.

When they don't — you get what we're seeing across the West.
India, for all its problems, still has that belief. Europe largely doesn't.

9/ India is reportedly the second-largest ChatGPT user base in the world.

No legacy SAP/Oracle systems slowing adoption.

The leapfrog playbook — landlines → mobile in 15 years — is now playing out with AI.

The US cannot wall this off.

8/ On AI — the Deep Seek moment wasn't surprising because China did it.

It was surprising because the entire US establishment was shocked China could.

That tells you everything about how systematically the rest of the world gets underestimated.

7/People ask why India kept buying Russian oil.

Simple: fossil fuel imports are India's single biggest trade deficit driver. Cheaper Russian crude saved ~1–2% of GDP.

Did any Western government offer to compensate India for that cost?

No. So the lectures were tone-deaf.

6/ And here's the strategic absurdity:

If you're paranoid about China, there is exactly ONE country in the world with the scale, alignment, and motivation to serve as a genuine counterweight.

India.

And this administration has spent a year alienating it.

5/ On India specifically:

2025 has left a deep crack in how Indians — elite and ordinary alike — view the United States.

Tariffs. The Pakistan White House lunch. H-1B chaos.

The mistrust won't go away easily. It will take years to repair.

4/ For foreign investors, the dollar is the single biggest differentiator.

Hedging dollar exposure is now very expensive.

Unhedged dollar exposure is very risky.

US assets are doubly unattractive on a currency-adjusted basis. That's new.

3/ This rebalancing isn't new. It was already overdue.

Every year of US outperformance mechanically inflated foreign investors' US exposure — even without new money flowing in.

Trump didn't start the trend. He just made it impossible to look away.

2/The average institutional portfolio: 80–90% in US, Europe, Japan.

Only 10–20% in emerging economies.

Where 2/3 of global growth already comes from.

Rising to 80% by 2030.

That gap doesn't close overnight. But it closes.

1/ "Sell America" is the wrong frame.

The right one: global investors are structurally overweight the US and Trump just made it impossible to keep ignoring.

A thread on what's actually changing in global capital — and why it matters 🧵

The great rebalancing from the US to EM

Global Capital’s Break With the US Is Long Overdue Trump’s policies have accelerated an overdue shift, as US market advantages fade and investors reassess their heavy exposure to American assets.

The most interesting story in global markets right now isn’t “Sell America.”

It’s that reallocating capital toward faster-growing, less-correlated economies could raise returns and reduce risk at the same time.

My Essay for #Bloomberg on why this is good news!

www.bloomberg.com/news/article...

Bloody Autocorrect! And yes, we are too good to resist and there’s 1.4 billion more where i came from 🤣

In the 2000 elections in North Rhein-Westphalia, the #CDU's election slogan was "Kinder start Inder" "Kids, not Indians" ...

As I occasionally remind my friends in the #German government, which I have advised for many years

Germany's problem is "Neither did the kids come, nor did the Indians"

#BehindTheScenes The creation of an artistic masterpiece #ArtKapoor #BonWeekend

Excellent—an optimistic take on global rebalancing, and well worth listening to. As noted in my brief yesterday, the US absorbs more than 40% of global gross capital flows and represents 47% of equity capitalisation—far above its share of GDP. Reducing that misallocation would be good for everyone.

The Great Global Rebalancing: How Trump's America is Losing its Grip on the World's Capital with Sony Kapoor Podcast Episode · The David McWilliams Podcast · 27/01/2026 · 45m

Amid the doom & crazy coming from the other side of the Atlantic, last year I suggested that #Trump's excesses would help catalyse a #GreatGlobalRebalancing away from the #US

One year on, LISTEN to how this has accelerated & why this is wonderful news 4 RoW

podcasts.apple.com/no/podcast/t...

EU and India Clinch ‘Mother of All Deals’ in Rebuff to Trump The European Union and India concluded a free trade agreement after nearly two decades of negotiations, as both sides seek to deepen economic ties and offset the impact of Washington’s tariff policies...

Delighted that after 16 years of advocating for it persistently, and of having had the opportunity to advice both sides on how to get to a deal, the #EUIndiaFTA has finally been signed ...

And it's timely, big and ambitious, just as it should be. Congratulations

www.bloomberg.com/news/article...

😂

So proud of my 8-year old son to have done a long cross-country ski trip with me after a full day at school without complaining ... too much!

Soon, the father will be left behind in the powder as the prodigal son powers ahead!!! #winterwonderland #Oslo #Norway #NordicLife #fatherson #BonWeekend

Yesterday, @sdgbenchmarks.bsky.social which I chair, released its eye-opening and deeply researched analysis and data on the performance and impact of the world's top 2,000 companies accounting for nearly 50% of world GDP - It is my #MustRead of the year so far www.linkedin.com/pulse/eye-op...

The #kindergarten run in #winterwonderland #oslo #nordiclife

Drøbak in Norway says different 🤣

#godjul #merrychristmas #kristmaskibadhai to all our friends and family all over the world from our little Indo-Brit-Nordmann-Svenskar Kapoor-Dalhoff clan from up where Santa lives #NordicLife 🎄🎅🥳

When the two year old plans our next holiday in #India

Winter has come ... and the fireplace is crackling ... and being the curious minded scientifically literate person that I am ... we have put salts of Sodium, Potassium, Lithium, Strontium, Copper, Calcium, Barium and Boron in the flames to make this gorgeous #RainbowFlame #NordicLife #ScienceAsArt