Defensive Investing for an AI Bubble | Ruchir Sharma's Hedge Rules

Bankless Station, I'm very excited to introduce you to Roshir Sharma. He's the CIO of Breakout Capital. He's the best selling author of a number of books, Breakout Nations, The Rise and Fall of Nations, What Went Wrong with Capitalism. Rishir, welcome to Bankless. Thanks, Ryan. Looking forward to doing this. Okay. So I feel like it's an absolute pleasure to, pick your brain today. You're an investor I followed for a while. I admire. Actually, because of you, I listened to an episode with you not too long ago, and I dabbled in my first emerging markets assets. So I made some buys in the emerging markets landscape. I had not previously done that. I think you've got a lot of ideas that can help break us out of our bubbles. So maybe I'll start with this question, Roshir. What are your most contrarian ideas as an investor right now? Well, you know, having studied market cycles for the last few decades, the one thing we know is that cycles don't last forever, that there is a certain duration to them. And what I've typically found is that every decade is defined by some new investment theme. So, you know, so if you look back at the last decade, it was all about American exceptionalism, which is that the only place in the world it seemed like to invest and to make money was America. The decade before that, it was all about emerging markets, the BRICS, as they came to be known, Brazil, Russia, India, China. The decade before that was, again, all about tech, Nasdaq, the nineteen nineties. The eighties was about Japan. The seventies was about the commodities and those countries benefiting from the commodity boom. So, you know, the nineteen sixties was all over the nifty 50. And so my big take, which I spoke about at the beginning of this year, was this incredible period of American exceptionalism was gonna come to an end, which is that the American stock market and American financial assets in general had outperformed the rest of the world by a very significant margin for possibly longer than anyone would have imagined, at least for longer than I had expected. Even though I was very bullish on America for much of the last decade, I thought that this had gone too far. And I think so, therefore, what we are seeing this year is that even though the American stock market has again defied the odds and done reasonably well this year, producing a return in excess of 15% for the S and P 500, The real big story here is that the international markets have done far better than The US this year. So the international markets on average are up close to 30% in dollar terms. So that gap of outperformance between America and the rest of the world, which we had right up until last year, that gap has now begun to close. And I suspect …