Hamish Douglass, Chairman and Chief Investment Officer, spoke with Janet Yellen, the most recent former chair of the Federal Reserve, and an adviser to MFG Asset Management, about the covid-19 health and economic crisis. The pair discuss the response of the Federal Reserve and how the crisis of 2008-09 has given guidance to the response. They talk about the economic impact and Janet explains why a Nike swoosh-like recovery is more likely than a V-shaped bounce back. They discuss the struggles of emerging markets, the risk of inflation and end on what they find to be optimistic about. Please find an edited transcript below.
China, rather than the US, could soon be the world’s ‘consumer of last resort’. To earn that status, China must avoid a ‘trap’ among other challenges.
The covid-19 crisis has changed the investment case for investing in infrastructure and utilities, because different sectors have been impacted in different ways. Obvious areas hit hard include airports and toll roads due to lockdowns and travel restrictions, but some parts of the infrastructure world have benefited from the crisis.