Peak tariffs are in, says KKR Henry McVey

• Global economy has a 'higher resting heart rate' due to increased fiscal activity, deglobalization, and inflation.
• Recommends investing in assets linked to nominal GDP, including infrastructure and hard assets.
• Identifies Asia (Japan, Southeast Asia, India) as under-owned markets with upward-inflecting earnings and potential currency tailwinds.
• Sees a global 'productivity boom' and suggests cheaper plays in markets like Korea, Taiwan, and Japan.
• Focuses on corporate carve-outs and views current credit conditions as a normalization, not a crisis.

Henry McVey of KKR discusses a 'regime change' in global markets, characterized by higher inflation and increased fiscal activity. He advocates for investing in assets linked to nominal GDP, highlighting opportunities in under-owned Asian markets like Japan and India, and specific sectors such as infrastructure and corporate carve-outs globally. He also notes a global productivity boom.