INVESTED: February Edition

Good morning!

This month in Invested, we explore shifting dynamics across markets, policy, and philanthropy. From the Supreme Court’s ruling on tariffs and the market implications of Kevin Warsh’s Fed nomination, to lessons in risk-parity investing drawn from cocoa’s dramatic price cycle, the Viewpoint team examines how structural forces and not headlines, are shaping capital markets.

From the Viewpoint Foundation, a spotlight on emerging research that reframes mental illness as a whole-body condition, challenging traditional psychiatric models and opening new pathways for treatment.

We also look outward at global energy competition, AI-driven market dispersion, rising debate over Fed independence, and thought-provoking reads on private foundations and the future of asteroid mining.

Happy Reading!

VIEWPOINT SPOTLIGHT

INSIGHTS FROM THE VIEWPOINT TEAM

TARIFFS AFTER IEEPA: THE INSTANT DIAL IS GONE, NOT THE REGIME

The Supreme Court’s decision to strike down IEEPA tariffs reinforces our view that peak tariff rates are behind us. While tariffs remain a structural tool, future actions will likely be slower and more procedural, reducing escalation risk and improving corporate visibility, supportive for equities, though fiscal pressures remain a headwind for long bonds. Read the full article from CIO Scott Smith for deeper insight.

 

 

 

 

 

 

 

 

 

 

 

COCOA’S ROUND-TRIP & THE CASE FOR RISK-PARITY PORTFOLIO CONSTRUCTION

Cocoa’s dramatic 2023–2026 price cycle saw futures triple and retrace, leaving static investors with little return. Through disciplined risk-parity construction, however, Viewpoint Diversified Commodities generated a +6% net contribution, demonstrating how dynamic risk allocation can harness volatility in convex markets. Cocoa underscores our philosophy of managing risk contribution, not notional weight. Read more in CIO Scott Smith’s full article.

 

 

 

 

 

 

 

 

 

 

THE WARSH RECKONING: A LIQUIDITY RESET OR A TEMPORARY REPRICING?

Kevin Warsh’s nomination as Fed Chair triggered a sharp market repricing, steepening the yield curve, strengthening the dollar, and pressuring metals. The reaction reflects uncertainty over the Fed’s future balance sheet and quantitative tightening, not just rate policy. While constraints may temper change, the distribution of outcomes has shifted. Read more for CIO Scott Smith’s full market implications and positioning view.

INSIGHTS FROM THE VIEWPOINT FOUNDATION

EXPLORING PHILANTHROPIC TRENDS & IMPACTFUL INITIATIVES

MENTAL ILLNESS BEYOND THE BRAIN

Emerging research suggests many mental illnesses may originate beyond the brain, and can be linked to immune dysfunction, viral infections, gut health, nutrient deficiencies, and shared genetic pathways. This whole-body model challenges traditional psychiatric frameworks and opens new avenues for prevention and treatment. Rethinking mental health as systemic could transform care delivery and outcomes. Read more in the full article from Viewpoint Foundation.

FEBRUARY’S INVESTMENT PULSE

WHAT TODAY’S MODERN MARKET TRENDS REVEAL ABOUT INVESTOR THINKING

CHINA’S FOUR-YEAR ENERGY SPREE HAS ECLIPSED ENTIRE US POWER GRID

China is building energy capacity at an unprecedented pace, adding 543 gigawatts last year alone to power AI, robotics, and advanced manufacturing while strengthening energy security. With renewables leading but coal, nuclear, and hydro expanding, Beijing is prioritizing scale and supply dominance. As grid reforms follow, global competitiveness may shift. Read more in this Bloomberg article to understand what this means for markets and geopolitics.

DISRUPTION AND DISPERSION

Though the S&P 500 sits near record highs, markets are roiling beneath the surface as investors reassess how AI will reshape business models. Software stocks have slumped, credit spreads have widened, and private markets face rising default risk, even as hardware and “HALO” stocks surge. The balance is fragile. Read more in this article from The Economist to understand the risks ahead.

PODCAST PICK

UNLOCKING INSIGHTS, ONE EPISODE AT A TIME

 

 

THE FIGHT OVER FED INDEPENDENCE JUST GOT TAKEN TO A WHOLE NEW LEVEL

Most economists debate how quickly inflation returns to 2%. Adam Posen disagrees with the direction entirely. The Peterson Institute president argues inflation will reaccelerate to 4% this year, driven by tariffs, immigration, fiscal easing, and declining Fed credibility. He also challenges signs of economic softening and weighs in on Europe’s geopolitical shift. Listen to the full conversation on the Odd Lots podcast.

MORE TO EXPLORE

CURATED READS FOR THE INQUISITIVE

 

 

 

21 FALLACIES ABOUT PRIVATE FOUNDATIONS IN CANADA

Private foundations are one of Canada’s fastest-growing charitable vehicles, yet myths about cost, control, fundraising, foreign activities, governance, and compliance persist. Misunderstandings can limit impact or create regulatory risk. With proper structure and advice, foundations offer flexible, strategic philanthropy. Read more in this article from Canadian Family Offices to learn more.

 

 

IS ASTEROID MINING THE NEXT GOLD RUSH OR JUST SCIENCE FICTION?

Asteroid mining has long fueled science fiction, but new meteorite research suggests certain carbon-rich asteroids may hold abundant metals, water, and rare elements. While sample-return missions offer clues, major technological and economic hurdles remain. Whether it becomes the next gold rush depends on innovation and global cooperation. Read more in this article from Discover to explore what’s realistic and what’s not.