Macro environment – implications for investment strategy
Banque Transatlantique London Branch hosted its inaugural Macro Breakfast at the Institute of Directors on Pall Mall. The first of a quarterly series of events, engaging clients and other interested parties on the state of play in markets, implications for investment strategy, with scope to delve deeper on pertinent investment topics.
The audience heard first from the branch General Manager, Gwenolé le Blevennec, who highlighted the progress the branch has made in bringing a wide range of services to its clients. The debit card is in place, the mobile application imminent and the wealth management service is set for launch in early 2018.
Chief Investment Officer, Robert Jeffree, presented on the Macro environment. As context, many so-called assets are fetching record prices: art, classic cars and now Bitcoin. In more traditional assets, such as US Treasuries and equities, the long run of performance can be traced back nearly four decades to Fed Chair Volcker and his policies to fight inflation. Against a backdrop where many assets are perceived to be expensive, Jeffree believes the investment opportunity comes from exploiting the turning point between persistent disinflation and steadily rising inflation. Regional differences are important; the US appears to be leading through this inflection point with strong economic growth, low unemployment and the anticipated unwinding of quantitative easing. Jeffree focused on demographics as a global driver of inflation, with ageing populations moving from saving to dis-saving and consumption increasing particularly in sectors such as health care.
The next Macro Breakfast will be held on Thursday 8th March 2018.