Tangible assets shine in a multipolar era

With headlines changing constantly, it is easy to lose sight of the deeper trends that shape long-term wealth. In times like these, it pays to step back, focus on the forces that are driving markets, and adjust investment strategies accordingly.

A rupture in the global order

One major trend to consider is the rise of “multipolar rivalry” and the push among large economies to ensure their strategic independence. Canadian Prime Minister Mark Carney recently called this shift a “rupture.”

“We know the old order is not coming back,” Carney told the World Economic Forum in January. “Many countries are drawing the same conclusions: they must develop greater strategic autonomy – in energy, food, critical minerals, finance and supply chains.”

This shift is prompting governments to ramp up domestic spending on defence and infrastructure, even as deficits remain high. The result is added pressure on assets that governments can create at will, such as currencies and government bonds.

Traditionally, government bonds have helped diversify portfolios during periods of turbulence. But this time, they have struggled – especially after the Iran conflict, when inflation fears pushed bond yields higher.

Tighter conditions in private credit markets have also spilled over, with some major US banks pulling back on lending.

Active management

In this changing landscape, active management and careful selection matter more than ever.

Not every company, sector, or country will adapt well to new economic and technological realities. Since the Covid-19 pandemic, inflation patterns have shifted. Sectors linked to AI infrastructure, energy, and materials are seeing strong demand, while others face disruption.

AI’s rapid growth is fuelling demand for data centres and the materials they need to operate. Investment in AI-focused data centres is expected to reach USD 94 bn by 2030, up from USD 35 bn in 2025 – a 22% annual growth rate.

Companies with strong brands, pricing power and access to high- quality infrastructure are better placed to deliver inflation-protected dividends. In this environment, the ability to spot long-term winners is crucial.

Risk management

A disciplined approach to risk – grounded in a clear view of both market and non-market exposures – is vital for portfolio resilience.

Recent events have underscored the importance of geopolitical risks, such as conflict, climate adaptation, regulatory shifts and supply chain bottlenecks.

Iran’s closure of the Strait of Hormuz has highlighted the dangers of concentrated supply chains for key goods like oil, liquefied natural gas, fertiliser, sulphur, helium, methanol and ammonia.

Meanwhile, China’s proposal to restrict exports of critical materials and rare earths has further exposed vulnerabilities, adding to price swings.

Diversification

Diversification remains the most effective way to manage risk and seize opportunities across asset classes.

The classic 60/40 split between equities and bonds has served investors well, but today’s environment calls for a broader approach.

We continue to see value in real, tangible assets – such as precious metals, real estate and infrastructure – which offer income, inflation protection and diversification. These sectors are not only benefiting from structural shifts in demand, they also offer investors the potential for inflation protection, income generation and long-term capital appreciation.

As supply chains for critical materials become more concentrated and the pace of electrification accelerates, the case for tangible assets grows stronger. Investors who look beyond short-term market fluctuations and focus on the underlying drivers of value will be best positioned to understand the complexities of this new era.

Summary

In a time of disruption, building resilient portfolios means staying disciplined, diversified, and focused on the long term.

Active management, strong risk controls and broad diversification – including tangible assets – can help investors navigate the uncertainty of a fractured global order.