Geopolitical and Trade Tensions Reshaping Capital Allocation

US-China AI competition intensifies (Alibaba bans Claude Code, Mistral AI as European alternative). Yen carry trade and Treasury liquidity drain signal systemic risk. Fed meeting sparks yield curve steepening, S&P 500 negative gamma. Judge ruling on Anthropic supply-chain risk adds legal dimension. Boards must adjust portfolio construction for high-dispersion world, monitor government contractor risk, and consider strategic autonomy driving fiscal spending. Burry's warning on volatility-targeting funds adds another systemic risk layer for capital allocation oversight.