JPMorgan Asset Management’s EMEA chief market strategist argues that market resilience is no mystery. He traces today’s environment to Ben Bernanke’s 2005 warning of a global savings glut, when Asian economies poured excess capital into U.S. Treasury bonds. The influx helped finance cheap U.S. borrowing but also inflated asset bubbles, leaving America with a $27tn negative net international investment position by the end of 2025.

Now the world is moving into a global savings grab, as governments and corporations scramble for capital to fund defence, energy and supply‑chain projects. Germany, for example, abandoned its debt‑brake rule to launch a sizable fiscal programme. At the same time, firms worldwide race to embed AI, expanding investment beyond U.S. tech giants and widening growth opportunities for investors.

For investors, the shift means broader geographic exposure and a weakening dollar as capital stays home, which could boost non‑U.S. returns. Scrutinising sovereign issuers that chase short‑term politics and corporate CEOs chasing pet projects becomes essential, favouring active fixed‑income strategies. In practice, a diversified, fundamentals‑driven portfolio now offers the best path to capture the emerging pool of capital.