Eight geopolitical dangers looming in 2016
15 Dec 15
Geopolitical risks are inherently difficult to predict, but here are some of the key issues GAM investment experts are watching in 2016.
US presidential elections
“A less discussed source of political risk for 2016 is next year’s US presidential election. To give an example, one ‘tweet’ by Hillary Clinton a few months ago regarding excessive drug prices was enough to send biotech stocks into a tailspin. Although it is by no means certain that Donald Trump will win the Republican nomination, he has suggested a number of protectionist measures that would certainly impact the emerging markets. Regardless of who wins the race, we are expecting a significant investment in infrastructure, particularly if there is a slowdown in US economic growth, given that monetary policy has reached a point of exhaustion. This might provide some hope to commodity markets, which are still suffering from a decline in Chinese demand.” – Matt Linsey, managing partner and portfolio manager at North of South Capital LLP, who runs an emerging market equity strategy for GAM
Tags: GAM | Investment Strategy
