May 17, 2023
In this fascinating episode, Andres Vinelli, chief economist at CFA Institute, sits down with Marko Papic, partner and chief strategist at Clocktower Group, to explore the geopolitical implications of a multi-polar world. Listen in as we discuss the role of the US and emerging markets, and provide tips for applying a geopolitical strategy toolkit to investing. We also forecast the resolution of the debt ceiling and analyze why a professional investor should care about geopolitics. Get ready to dive into the idea of a multi-polar world being a discordant one, and how this can impact investment profiles in different regions or sectors in the economy.
Join us as we continue the conversation by examining strategies emerging market economies can use to benefit from engaging with both the US and China. We'll also discuss how investors can use material constraints to assess political paths of least resistance. Don't miss our analysis on the irony of China having withdrawn their efforts to finance infrastructure projects around the world, and the efforts of the US to counter the Belt and Road Initiative. This episode is packed with insights on investing in emerging markets and commodities in a multi-polar world — you don't want to miss it!
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(0:00:13) - Geopolitics and Investing (10 Minutes)
Marko Papic, partner and chief strategist at Clock Tower Group, and I explore the geopolitical implications of a multi-polar world. We examine the role of the US and emerging markets, and provide tips for applying a geopolitical strategy toolkit to investing. We forecast the resolution of the debt ceiling and discuss why a professional investor should care about geopolitics. We analyze the idea of a multi-polar world being a discordant one, and how this can impact investment profiles in different regions or sectors in the economy.
(0:10:40) - Assessing Geopolitics for Asset Allocation (13 Minutes)
We explore strategies emerging market economies can use to benefit from engaging with both the US and China, and how investors can use material constraints to assess political paths of least resistance. We also discuss the irony of China having withdrawn their efforts to finance infrastructure projects around the world, and the efforts of the US to counter the Belt and Road Initiative.
(0:23:23) - Investing in Emerging Markets and Commodities (2 Minutes)
Marko Papic and I discussed the global investment landscape in a multi-polar world. We looked at how countries like Spain, America, Brazil, Netherlands, and Japan are increasing their CAPX spending, and how this could create a new CAPX-driven cycle, even without a single country to replace China. We examined the impact of this cycle on the US dollar and emerging markets, as well as the strategies investors can use to benefit from this shift in the global economy.