U.S. equities reversed early gains to finish lower, with the Dow declining -0.65%, the S&P 500 down -0.63% and the NASDAQ slipping -0.47%. Safe-haven assets rallied, with gold reaching an all-time high as investors sought stability amid market volatility. On the corporate front, Salesforce guided for $60 billion in revenue by 2030, while Oracle rallied on confidence in its cloud growth outlook, underscoring that AI-linked enterprise technology remains a key area of strength. Adding to the positive momentum in the sector, TSMC raised its 2025 revenue guidance, citing the ongoing AI “megatrend” and reinforcing confidence across the semiconductor space.

Commentary from Industry Leaders 

This week I looked into insights from Harold Hope from Goldman Sachs on private markets. He highlighted how secondary funds, which allow investors to sell their stakes in existing private equity or private credit funds before maturity, have evolved from a niche segment into a $650 billion market, growing at roughly 15% per year. Transaction volumes are expected to exceed $200 billion in 2025, underscoring the growing demand for liquidity within private markets.

Two key trends are driving this expansion. First, institutional investors are actively managing portfolio liquidity following muted distributions from private equity in recent years. Second, the rise of retail-accessible secondary vehicles is broadening participation, with retail NAVs growing at nearly 50% annually, according to Goldman Sachs.

 Harold noted that the secondary market now serves as a core allocation within many institutional portfolios, providing diversification, shorter duration and more predictable cash flows. It also allows fund managers to extend ownership of high-quality assets through continuation vehicles, keeping exposure to strong performers while offering liquidity to investors seeking an exit.

From a macro lens, Goldman views the rise of secondaries as a sign of market maturity, not stress, providing a liquidity “release valve” across private equity, credit, infrastructure and eventually real estate. With an estimated $200 billion of dry powder chasing growing deal flow, the firm expects continued expansion and sees the asset class offering attractive risk-adjusted returns and counter-cyclical opportunities.

• Liquidity innovation: Secondaries provide optionality in traditionally illiquid private assets.

• Diversification and faster capital deployment: Enables access to mature portfolios with near-term cash flow visibility.

• Institutional adoption: Many pension and sovereign funds are now treating secondaries as a core sleeve in private market portfolios.

• Cross-asset expansion: Growing use across private credit, infrastructure and real estate aligns with current fund offerings available to wholesale investors.

• Compelling timing: With private valuations adjusting and discounts narrowing, the environment is attractive for selective buyers.

Economic News 

China has pushed back against U.S. accusations over its rare earth export controls, accusing Washington of stoking panic and distorting facts after Treasury Secretary Scott Bessent criticised Beijing’s new measures as “a global supply chain power grab.” The Chinese Commerce Ministry said the rules were consistent with global standards and would not restrict exports of legitimate civilian goods, while state media issued a seven-point rebuttal defending the policy.

The exchange comes as tensions rise ahead of a planned Trump–Xi meeting in South Korea, with both sides trading personal and political barbs. The U.S. has threatened 100% tariffs on Chinese goods if Beijing doesn’t reverse course, while China blames the U.S. for expanding its export restrictions on semiconductor technology. Although markets are relieved that a full trade breakdown has been avoided, analysts warn that the fragile truce could unravel quickly, risking further disruption to global supply chains and renewed volatility in technology and manufacturing sectors.

Escalating US–China tensions could drive short-term volatility across global markets, particularly in technology, manufacturing and commodities tied to critical minerals. Investors may consider maintaining diversified exposure and a focus on high-quality or domestic-oriented assets less reliant on global supply chains.

Market Snapshot 

• Australia: Market has opened lower today on rising US credit worries. 

• United States: Dow -0.65%, S&P 500 -0.63%, Nasdaq -0.47%. 

• Bonds: US 10-year yield at 3.97% and Australian 10-year yield at 4.15%.  

• Gold: Increased overnight.

Key Events Coming Up

• Thursday, October 23, 2025: US Initial Jobless Claims

• Friday, October 24, 2025: US Core CPI Figures (Sep)

Investment Update

Markets saw a clear shift toward defensive assets this week as investors sought protection from renewed volatility. Gold climbed to record highs while U.S. Treasury yields fell, signalling a strong move into traditional safe havens amid concerns over financial sector stability and uncertainty surrounding the ongoing U.S. government shutdown. The rotation highlights a more cautious market tone, with investors favouring quality and liquidity as macro risks re-emerge.

For portfolios, maintaining balance is key. Exposure to precious metals, high-quality bonds and income-producing alternatives can help cushion downside risk while preserving flexibility for future opportunities.

Now would be an opportune time to review your portfolio’s defensive positioning, ensuring capital remains protected while still positioned to benefit when market confidence returns.