Episode 120 – Choose your own line: Lessons from motorcycles

In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, shares an important lesson when riding a motorcycle that can be applied to China's FOMO driven equity rally. (00:51) We had a client lunch in Newcastle this week. One of the topics of conversation was not surprisingly, AI. But the question was more around – is AI an era or a regime shift? (03:47) Political unrest seems to be on the rise at the moment. We are seeing protests in Sydney and Melbourne and other capital cities around the world protesting immigration among other things. Politics is always a difficult one to price. How do you and team think about this growing unrest? (06:56) What does this mean for investors? (09:97) One of the other points of discussion recently has been around how governments have become less global. What do you mean by that and what are the implications for investors? (12:18) Nvidia's earnings result last week was overshadowed a little by China's latest developments in AI. What can you tell us there? (15:08) Chinese equities are on a tear right now – they were one of the better performing markets in August. How much of this rise is based on the fundamentals around AI and how much is based on the FOMO trade – the fear of missing out. (17:23) It is common isn't it for Chinese equities to experience sentiment driven swings like this?