On February 5, 2026 I hosted The Scoreboard: By Your Side Chat featuring special guests from Global X: Malcolm Dorson, Head of Emerging Markets Strategy, and Tejas Dessai, Research Analyst for Thematic Growth ETFs.
The discussion offered clients a behind-the-scenes look at how we evaluate global markets, identify structural opportunities, and position portfolios beyond traditional asset allocation.
From Optimistic or Pessimistic… to Opportunistic
At SHCWM, we believe markets are rarely purely “good” or “bad.” There are always reasons for optimism and always reasons for caution. The difference lies in how you respond.
Rather than being emotionally pulled between bullish and bearish narratives, we strive to be consistently opportunistic — using disciplined research to identify areas of structural growth regardless of whether markets are rising, falling, or moving sideways.
That philosophy aligns closely with Global X’s approach. Their ETF strategies are intentionally concentrated and thematic — designed to capture specific industries, technologies, or regions that may be underrepresented in broad indexes like the S&P 500.
Thematic Investing: Capturing Structural Change
Tejas Dessai emphasized a critical point: innovation does not pause for market volatility.
Global X focuses on identifying long-term “mega themes” — structural shifts reshaping the global economy — and gaining pure exposure to them. Their methodology prioritizes companies that derive significant revenue (often 50% or more) from a specific theme to ensure targeted exposure.
Tejas explored their Global X Defense Tech ETF as an example within the Defense Technology theme. Global geopolitical shifts and rising NATO spending have triggered what Global X describes as a defense spending supercycle. NATO countries have moved from a 2% GDP defense target toward a 5% target — a meaningful structural shift.
The Global X Defense Tech ETF focuses on next-generation defense technologies, including companies such as:
- RTX Corporation (formerly Raytheon)
- Rheinmetall
- Palantir Technologies
The strategy reflects the growing importance of cybersecurity, AI-driven defense systems, and drone technologies — areas seeing accelerating capital allocation globally.
Digital Assets: Institutional Adoption Accelerates
On the digital asset front, the conversation centered around Bitcoin, blockchain infrastructure, and the growing institutional framework surrounding digital assets.
Rather than focusing solely on cryptocurrency prices, Global X prefers exposure through the “equity layer” — companies building the infrastructure of blockchain-based financial systems.
Regulatory clarity, including legislation such as the GENIUS Act, has helped accelerate the institutionalization of digital assets, signaling a transition from speculative adoption toward integration within financial infrastructure.
Commodities: Structural Demand Meets Constrained Supply
Commodities play multiple roles within portfolios:
- Exposure to real economic activity
- Participation in structural innovation
- Inflation hedging
- Diversification benefits
Silver: More Than a Precious Metal
While silver has historically been associated with jewelry or bullion, industrial demand is transforming the thesis. Solar panel manufacturing has become a major driver of silver demand, replacing older uses like photography.
Because roughly 70% of silver is mined as a byproduct (often alongside copper), supply does not respond quickly to price increases — creating potential long-term imbalance.
Global X favors silver miners over physical bullion, as mining companies can offer earnings leverage during rising price environments.
Copper: The “Dr. Copper” Thesis
Copper is increasingly tied to electrification, AI data centers, and infrastructure modernization. While historically cyclical, demand is shifting toward structural drivers such as:
- Grid expansion
- EV infrastructure
- Data center buildouts
At the same time, bringing new copper mines online can take 10–15 years, creating potential supply bottlenecks. This combination supports the case for structurally higher copper prices over time.
Emerging Markets: A New Cycle?
Malcolm Dorson addressed a major shift underway in international markets. After a decade of U.S. outperformance, international and emerging markets may be entering a renewed period of opportunity — particularly in a weaker U.S. dollar environment.
Historically, as measured by the U.S. Dollar Index (DXY), a weakening dollar has correlated with stronger emerging market performance.
Latin America in Focus
Latin America stands out for three primary reasons:
- Beneficiary of a weaker dollar
- Strong exposure to rising commodity prices
- Political shifts toward fiscal reform in select countries
Argentina
Following the election of Javier Milei, Argentina has begun implementing fiscal reforms aimed at restoring economic stability. The country’s market cap-to-GDP ratio remains significantly below developed markets, suggesting room for expansion if reforms continue.
Colombia
Colombia remains attractively valued relative to broader emerging markets. With upcoming elections and shifting political sentiment, potential policy normalization could serve as a catalyst. Additionally, Colombia may benefit indirectly from any stabilization in neighboring Venezuela due to historical trade ties.
Why This Matters for Our Clients
What clients heard in this discussion reflects how we manage portfolios:
- We do not rely solely on broad index exposure.
- We look for structural shifts that may be underrepresented in traditional allocations.
- We collaborate with specialists who conduct deep, on-the-ground research.
- We actively adjust portfolios rather than “set and forget.”
Whether through defense technology, digital infrastructure, commodities, or emerging markets, our goal remains the same: position capital where structural tailwinds are forming — not where yesterday’s winners already dominate index weightings.
Markets will always fluctuate. Innovation will continue. Economies will evolve.
Our responsibility is to stay opportunistic — and position portfolios accordingly.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
No strategy assures success or protects against loss. Asset allocation does not ensure a profit or protect against a loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF's net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.