Perspectives: Episode 81 – The Biggest Risk Currently

In this episode, Escala Partners CIO, Tracey McNaughton, talks about where the CIO team believe the biggest risk is currently for financial markets and why investors need to be more discerning in their asset allocations as a result.

(0:56) - We are going to begin this week, Tracey, with a question from one of our clients – actually it’s one that is asked often in our client meetings. What is the biggest risk right now?

(4:43) - Speaking of China, the economy remains under a dark cloud – we have had a lacklustre re-opening out of covid and now issues in its property market are boiling to the surface again.

(8:22) - How much will China factor into the deliberations of the Reserve Bank when it meets next month to consider interest rates?

(10:14) One of the biggest moves in the market over the past fortnight has been in bond markets. Bond yields around the world have risen sharply in the past week. What is driving it?

(12:38) - The recent Bank of America fund manager survey seems to confirm this more optimistic view. 

(15:52) - Japan it seems is receiving more attention in the past few months than it has ever received in the past few decades. Why the sudden interest in Japan?