00:00Do you sell America on Fed independence risks?
00:02I think so, because ideally what you want to own is international assets.
00:08We do believe that in this environment it is quite difficult and challenging for the U.S. dollar.
00:14As a consequence, it could weigh negatively on U.S. equities, particularly if you're an international investor.
00:20So that is one thing to bear in mind.
00:22But also, if we have a broadening out, that's an environment where you see better growth.
00:27We do think earnings growth will be better.
00:30So that makes other markets interesting.
00:33Remy, good morning.
00:34Do you see that as a result of this conversation around Fed independence, which has certainly gained momentum over the last 24 hours or over the weekend,
00:42a week a dollar, we see that already a little bit.
00:45It's not a huge amount.
00:45We see some movement in bond markets.
00:47Does this add to reasons to look at non-U.S. assets then?
00:50Is that what this leans into?
00:53Yes, because there are interesting stories elsewhere too.
00:56So, for example, Japan in Europe, we have other activities happening elsewhere.
01:01But when you have an environment where the dollar is weakening, this typically leads to positive dynamics elsewhere because it reduces financial tightening.
01:12And so that's what could make other asset classes, other equities, but other assets too interesting.
01:18For example, commodities.
01:20Yes, I was going to ask you about that because I think you had some positive things to say about gold.
01:24I mean, we see silver really flying today.
01:26Also, you're positive on oil.
01:28And I wonder, what's the argument around the commodities basket?
01:31Is it a risk-off geopolitics argument around commodities?
01:35What's the driving force for you?
01:37There are three key driving forces.
01:39First of all, we do think that growth, global growth, broader growth will be better, which typically is positive for commodities.
01:46The other view is the U.S. dollar, typically when the dollar weakens commodities as well, particularly precious metals.
01:53But the third is geopolitics.
01:55Now, this is something we cannot call, as you mentioned, there'll be a lot of noise.
01:58But we do think that in an environment where geopolitics is going to be with us and the best way to be proactive rather than just being reactive is to have some hedges in the portfolio.
02:09So it is a good environment for commodities.
02:12Admittedly, oil hasn't done well.
02:14It hasn't been the best environment.
02:17But at these levels, we think a lot of that negativity is price.
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