Perspectives: Episode 99 – The "return of nations"

In this episode, Escala Partners CIO, Tracey McNaughton, talks about what she sees as the three main takeaways from the recent string of elections around the world. She and Ed talk about what Le Penn describes as the "return of nations", the rise of nationalism, and what it may mean for investors. (0:49) Tracey, let's start with the topic of the day, inflation. We had some key data out of the US. (1:56) The easing cycle has started for some though hasn't it. (3:17) Why is that? We had data out last week showing the economy barely growing and yet the expectation is the Reserve Bank will be one of the last to cut interest rates? (4:33) Elections have been another important topic. In the past couple of weeks we have had elections in Mexico, South Africa, India and Europe. What do you make of the results we have seen so far? (9:30) What are the investment implications emerging so far from these elections? (12:41) India is a market that you and the CIO team like a lot given its favourable demographics and it being one of the key beneficiaries of the rejigging of supply chains away from China. Does the election outcome change your view at all? (15:14) One of the reasons you and the team are less convicted on China is the changing shape of global supply chains - moving away from China. (17:05) So while China is still the manufacturer to the world, alternative manufacturing hubs are being established.