Nov 16, 2022
In this episode, Escala Partners CIO, Tracey McNaughton, shares her views on the latest inflation report out of the US and what it may mean for international equity investors. International equity investors have long benefited by being currency unhedged. Is it time to make a change on the hedging front?
(0:44) - News that a missile has landed in Poland killing two people has broken this morning and quickly affected markets.
(2:10) - You have a dashboard of key economic and financial indicators. What is the dashboard telling you at the moment?
(6:12) - Let’s talk about the main event from last week, the US inflation report. It had a big impact on markets.
(8:54) - Does the inflation report change your views?
(11:40) - What about the US dollar. For risk management reasons we tend to be unhedged against foreign currency risk in our international equities portfolio. Has the inflation report changed that view?
(13:57) - The last time we changed our hedging strategy was in March 2020 when it was clear the US Federal Reserve was going to devalue the US dollar through unlimited quantitative easing.
(15:50) - Has your view on China changed with the easing of Covid restrictions and efforts by the authorities to support the property market?