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'Perspectives' by Escala Partners

Nov 14, 2023

Perspectives: Episode 87– Doughnut Worry – Obesity Drugs Challenge AI in the Mega Theme Stakes

In this episode, Escala Partners CIO, Tracey McNaughton, discusses the implications of investing in a world where governments and their debt burdens are getting bigger at the same time as consumer waistbands are getting smaller. (0:50) Interest rate cut expectations are being priced back into the market for 2024 again. Despite this, the market was put back in its place last week by Fed Chair Jay Powell. (2:53) We have been talking a lot about fiscal policy recently in our meetings. Governments everywhere seem to be in a spending mood. This will act like a cross current, won’t it – pushing against the central bank attempts to slow growth to rein in inflation. (6:02) You have called this a fiscal policy renaissance. For the first time in several decades, fiscal policy is taking a lead role in driving growth in the economy. What are some of the investment implications of this? (8:09) The investment implication that comes from this is the attractiveness of investing in floating rate bonds. (10:32) So, what is the catalyst – is it valuation or is it something more? (12:17) Earnings season in the US is almost over. Were there any surprises? (15:29) We can’t finish, Tracey, without talking about the latest mega trend sweeping the investment world – GLP1’s. What are GLP1s and why are they having such an impact?

19 min