CIO Urges Global Exposure as S&P May Misprice Geopolitics

Don Calcagni, chief investment officer at Mercer Advisors, told the Trends with Benefits podcast in a recent episode that the S&P 500 may be mispricing geopolitical risk and urged investors to increase global exposure.

He argued current S&P pricing may not reflect geopolitical developments that affect regional growth and sector performance. To address those risks, he advised adding positions outside the United States and pointed to India for longer-term growth potential.

On currency trends, he expects the U.S. dollar to weaken from recent levels. A softer dollar can change returns for U.S. investors holding foreign assets and can create opportunities in markets priced in other currencies.

He described gold as a tactical trade rather than a core long-term holding for most portfolios, useful for hedging specific risks or taking advantage of short-term market dislocations.

He highlighted differences in economic growth and policy across regions and noted that concentration in a single market can leave portfolios exposed to localized shocks. He framed the recommendations as tactical adjustments to portfolio mix rather than calls for wholesale changes to long-term strategy.

The episode referenced the S&P 500’s role as a benchmark and the dollar’s status as the primary reserve currency.