The Great Rotation Has Quietly Begun

Why 2026 Could Mark the Shift from Financial Engineering to Real Assets

Something subtle but powerful is happening beneath the surface of markets.

In January 2026, U.S. M2 money supply reached $22.44 trillion, surpassing its 2022 peak and expanding roughly $1 trillion year over year. Liquidity is rising again. Not explosively like 2020 — but steadily.

At the same time, real assets - commodities, infrastructure, real estate - are trading at their lowest relative valuation versus financial assets in nearly a century.

Let that sink in.

Over the past four decades, financial assets dominated. Stocks and bonds outperformed everything else. Falling rates, globalization, and technology created a structural tailwind for financial engineering over physical scarcity.

But today: