Economic realities and policy shifts are diverging from market pricing. US equity valuations are at record highs and yet the outlook for the world’s largest economy is challenged by a combination of increased trade tariffs, falling immigration and rising deficits – threatening an environment of low growth and sticky inflation. In addition, tensions between the White House and Federal Reserve raise the risk that the independence of the central bank will be undermined in 2026 when a new Fed Chair takes over, further denting investor confidence. Portfolio construction practition...