Global funds are starting to change direction! Safe-haven trades are fading—where will money flow next?

There’s a saying in financial markets: money is always more honest than sentiment.
When geopolitical risks rise, capital tends to seek safe-haven assets; when signs of easing emerge, it may flow back into risk assets such as stocks.
Recent market moves are a typical shift in sentiment.
Oil prices have fallen, demand for the U.S. dollar as a safe haven has eased, and Asian and U.S. stock markets have rebounded. Investors are beginning to reassess the relationship between risk and return.
So where might money flow next?
First, quality stocks that have fallen sharply in the recent period. When risk appetite recovers, capital typically looks again for opportunities where valuations and earnings are more attractive.
Second, industries that benefit from lower energy costs, such as airlines, logistics, some manufacturing sectors, and chemicals. However, whether lower costs actually translate into profits also depends on each company’s competitive environment.
Third, technology growth stocks. If expectations for interest rates and the earnings outlook improve, growth assets may attract renewed investor attention.
But one thing must be kept in mind: capital flows are not a one-way street. A decline in safe-haven demand does not mean safe-haven assets have completely lost their value; rising risk assets do not mean all industries will rise in tandem.
In particular, if geopolitical negotiations hit another snag, capital could quickly change direction.
It’s like a grand dance, with capital always ready to change partners. What truly matters is not chasing every turn, but recognizing who has long-term appeal. #美伊谈判出现新进展 $SPCX