BB - Buy the US, sell Europe seems to be the trade in vogue. How long does that last?
CW: “I don't think it last long. I think there's a sort of post-election surge on the back of the Trump clean sweep, which is clearly a very pro-growth agenda with the one caveat on tariffs, of course, which is which is an important caveat. I think that you have taken a bit of a hit on that. But I think as to what we just heard on the clip; the market participation should broaden. I feel cyclically the global economy should be accelerating quite nicely into next year, and that will change the way stock market sectors behave and where the leadership is. So, the leadership, as we know, up until the middle of this year was very much narrow, Mag seven and so on – that’s of course because most of the West was stagnating for a couple of years. I think as we as we deliver this cyclical impetus, as we cut rates, as we get more fiscal stimulus, cyclical global economy in the West is going to reaccelerate and global stock market participation is going to broaden away from the Mag seven. In fact, the market's already trying to think about that (other than these overnight news flow of health care pharma), which I think is fascinating.
There's more to it than just vaccines. It's much more complex than that of the appointment of Bobby Kennedy.
But yes, I think the market's broadening.
And cyclically, the global economy looks really good for next year.”
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