In this episode, Escala Partners CIO, Tracey McNaughton, shares her views on the unhealthy state of the US equity market and why this should be of concern for investors. Reflecting this, institutional investors are currently the most risk averse since 2009 preferring to allocate to money market funds and bonds. Adding to the risk aversion is uncertainty over the US debt ceiling which once again threatens to send the US government into default next month.
(0:57) - Tracey, you have been talking to us recently about how unhealthy this US equity market is. Can you explain what you mean by that and what are the implications for investors?
(2:41) - This is not just the S&P500. What role is AI playing in all of this?
(5:43) - Institutional investors are staying away from this market, where are they investing?
(8:54) - Inflation or recession, which concern is driving the market the most?
(12:25) - We had the Australian Federal Budget released last night. The government's finances have improved significantly thanks to higher commodity prices, a strong labour market and strong population growth.
