Episode 124 – Investing in a New World Order

In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, talks about the release of Escala's The Agenda publication, what a shifting global order means for investors and how it is shaping the way Escala constructs portfolios. (0:52) This is the 7th edition now. Before we get into the details, remind us - what is The Agenda? Is this a tactical playbook for the next 12 months? (1:47) And that didn't just start yesterday, did it? Inequality has been building for some time in a number of countries – Australia and the US (3:07) So, markets recovered - but society fractured. You talk about this in The Agenda and describe it as a "bonfire of the vanities." (5:13) You could probably include the recent experience in Australia in that, with the breakdown in the marriage of the Liberal and National parties and before that the rise of the Teals. (5:52) So here we are in 2026. More minority governments, more fragile coalitions. More populist leaders. What are the consequences of all of this? (7:37) When you say politics is driving markets more, does that mean investors need to react to every tweet or headline? (9:02) Does adapting mean tweaking assumptions? Or is this a more fundamental change? (11:05) And portfolio construction? How are you thinking about that? (12:53) A clear example today is datacentres and power. Amazon can build a datacentre significantly faster than an energy company can supply the power to operate it. (13:54) You've described the gold chart recently as not a hockey stick but a right angle. Is inflation fear driving that? (15:12) You're becoming more nuanced, more inflation aware. Anything else? What about volatility? (16:49) So, this isn't about getting more defensive in portfolios?