Defence no longer simply represents a tactical trade but instead looks set to become a core allocation in portfolios. This shift has been driven by political consensus, structural shortages and evolving ESG frameworks.

We are approaching the midpoint of a year once again defined by persistent geopolitical uncertainty. In such an environment, portfolio construction is truly put to the test. One of the key lenses used in this context is cross-asset correlation, as it provides a direct read on the diversification benefits investors can realistically expect. The most closely watched relationship in this regard is, of course, the correlation between equities and bonds.

A new supply shock has arrived. Here’s what it means for markets.