The investment world isn’t just shifting—it’s transforming at the structural level. From digital assets to deregulated credit, from central bank contraction to the potential for a generational U.S. economic renaissance, Wellington-Altus Private Wealth’s Jim Thorne sees a high-conviction macro setup advisors can’t afford to overlook.
In an interview with The Wealth Advisor’s Scott Martin, Thorne, Chief Market Strategist at Wellington-Altus, discussed why he sees digital assets as a legitimate allocation, why deregulated regional banks may drive a new wave of American growth, and how a critical market correction may have reset the four-year investment cycle.
Bitcoin Isn’t Fringe Anymore
What was once dismissed as speculative has become, in Thorne’s view, part of the investment canon. “Society has had the great awakening, and realizing that money supply grows at 8% a year,” he says. “So, if you want to build a portfolio for your clients that maintains their standard of living, you’ve got to beat 8% because fiat money is going to deflate or inflate by 8% a year.”
He places Bitcoin within that context—not as a bet on hype or price but as a response to the erosion of purchasing power. It’s a store of value that, much like gold has done, may play a legitimate role in long-term wealth preservation.
But there’s also a behavioral risk in avoiding the conversation entirely. “If you do not have the conversation with [clients], then that can come back decades, or months, weeks later, where they sit there and say, ‘I’m paying you 2%. Why aren’t we at least having these conversations?’”
Even at the institutional level, Thorne argues that holding cash without yield is becoming indefensible. “You’re the CFO of a big company, and you’re sitting on a billion dollars’ worth of money, and you’re getting a couple of beeps. And then some board member says, ‘But everybody knows money supply is growing at 8% a year. You’re not doing your fiduciary job. Why aren’t you owning Bitcoin?’”
As governments consider formalizing their roles in crypto markets, Thorne believes that once a strategic Bitcoin reserve becomes policy, the rest may follow quickly. “You’re going to see the government starting to accumulate Bitcoin,” he says. “So, now the question is, why aren’t you?”
Stablecoins, Regulation, and the Digital Dollar
Thorne also sees legislation driving a new phase of digital adoption. He points to the Genius Act (which creates a national framework for stablecoin issuance and regulation) and Clarity Act (which would define digital assets and clarify their regulatory oversight) as milestones that aim to create a dollar-backed crypto infrastructure without destabilizing the broader system.
“A stablecoin is a money market fund,” he explains. “What does that mean? I give [a hypothetical stablecoin issuer] $1,000 and you issue a thousand [units of that stablecoin]. Well, you have to basically back that $1,000 with U.S. dollars, and I would think, if in Treasuries or U.S. securities, 90 days or less. Boom.”
With that structure in place, the U.S. dollar becomes functionally digitized—and moored in a new way. As Thorne points out, “We’ve just anchored the U.S. dollar to something in the digital world, haven’t we?”
Thorne doesn’t believe the current flood of coins and tokens is a cause for alarm. He sees it as part of a natural technological evolution, similar to the early days of software. “We’re going to go through this period where there’s going to be stick coin and dog coin and tree coin, but eventually we’re going to evolve,” he explains. “You’re going to have four or five that are global.”
As banks adapt, only a few may emerge as winners. “Those companies that ceased to embrace the new technology are going to cease to exist,” Thorne says.
For advisors, the implication is clear: the infrastructure of money is changing, and client portfolios must be built with that in mind—not to speculate, but to adapt.
The End of Centralized Control—and the Return of Local Lending
The future of credit creation may no longer be dictated by central banks, according to Thorne. As policymakers rethink the role of the Federal Reserve, momentum is building for a shift back toward decentralized, market-driven lending—particularly through regional banks that operate closer to the ground.
Thorne sees credit creation moving away from the Fed and toward Wall Street. In his view, that shift is foundational to future economic growth.
“The Fed thinks that they can control the business cycle,” he observes. “The Fed thinks that they are the purveyors of innovation and what we as a society want. So that’s over. Credit creation goes back to Wall Street.”
He expects a return to localized lending as regulatory burdens on regional banks ease. “You deregulate and get regional banks lending again, then it’s like you have a local bank in Poughkeepsie on the ground lending to a local guy and gal, husband and wife entrepreneurial,” says Thorne. “They’re growing, and all of a sudden they have taken their idea in the garage. They got a loan, and now they’re employing 75 people locally.”
That kind of grassroots credit expansion doesn’t just power GDP—it redistributes opportunity and lays the foundation for a durable recovery. Advisors who once looked only to mega-cap financials or money-center banks may want to reexamine the opportunity in smaller, more agile lenders.
A Four-Year Market Reset
Thorne also believes investors may be misreading the current market cycle. The April correction, he argues, wasn’t noise—it was a structural reboot.
“What President Trump did in April was profound,” he says. “We usually have one 20% correction every four years. So, the 20% correction we were supposed to have in 2026 happened in April.”
Without a recession, the odds of another 20% drawdown are low, he contends. That resets expectations for advisors who may be bracing for another round of losses. “Go back in history. How often have we had two 20% corrections? Only happens when we have a severe recession. If we don’t have a severe recession, we’re not going to get a 20% drawdown. The four-year cycle has been reset.”
Thorne’s position: “Everybody have risk on, minimum cash.”
While that call won’t be right for every client, it encourages advisors to rethink the timeline of their positioning—especially as historical patterns reassert themselves.
A Generational Shift Already Underway
For Thorne, the broader shift goes beyond financial metrics. He views it as a generational realignment—of institutions, incentives, and global power structures. That includes the way the U.S. dollar is used abroad, especially after it was weaponized during the Russia-Ukraine conflict. “Wouldn’t we basically sit there and go, Why are we owning so many US Treasuries in US dollars? Shouldn’t we diversify away?”
The implications are global, but he sees the center of gravity shifting back to the United States as Wall Street and banks reclaim the credit creation mantle. “America is going to have a Renaissance that people just do not grasp, and it’s standing right in front of them,” Thorne argues. “So, when you hear what they’re saying, boy, oh boy, are they pulling the levers and setting this thing up.”
And while some institutional players remain focused on short-term moves, others are beginning to act. “There is a small group of people that make things happen,” he adds. “There’s a little bit larger group that watches things happen. And then the majority of people in this business continually say what the heck just happened?”
Thorne’s goal, as he puts it, is to help advisors move from the third group into the second—before the first group runs away with the prize.
Preparing Clients for What’s Next
Thorne doesn’t offer predictions; he presents a framework—one that encourages advisors to connect macro signals with client portfolios in a way that protects purchasing power, expands opportunity, and avoids becoming complacent.
“We are in a period of generational change,” he says. “The U.S. is the place to be. They get it.”
His parting thoughts are grounded in simplicity. “The four-year cycle has been reset by President Trump. He unplugged and plugged it in, the ‘computering’ of the four-year cycle,” he says. “That means historical data going back to 3,400—by this time next year, 7,600–7,700 on the S&P 500. Think about that.”
The strategist’s view: Now is the moment to step back, get clarity, and position ahead of what may be a generational realignment in policy, credit, and capital formation. For advisors, the opportunity lies not in forecasting—but in preparing.
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