Whether you're investing in equities, debt, or alternatives, uncertainty is an inescapable part of the game. But Michael Thawley, AO, Vice Chairman of Capital Group International, says this current period of political uncertainty is unique:
"I've never been more unsure about what the future holds than I am now."
And he should know, having spent 46 years in foreign affairs, diplomacy, and politics. His appointments have been wide ranging, including International Advisor to John Howard, Australian Ambassador to the USA, and Secretary of the Department of Prime Minister. Now, having left political life, he advises Capital Group, the world’s largest active fund manager, on important geopolitical issues.
In this week’s podcast, we discuss the US-China trade war, Australia's relationship with China, and we'll hear about the time he was personally invited to the Whitehouse by President George W Bush.
1:36 - Michael recalls his farewell at the White House with President George W Bush, Donald Rumsfeld, Condoleezza Rice, Dick Cheney, and many others.
5:01 - How this current period of political uncertainty compares with prior periods throughout the 70s, 80s, and 90s.
9:39 - What to expect from the US-China relationship in the short, medium, and long-term.
13:04 - How the US-China trade war could affect the Australian economy.
15:30 - The importance of the Brexit negotiations for Australian investors. Will a deal be completed before the deadline?
18:39 - Australia's relationship with China; balancing economic and strategic interests.
24:07 - Looking at Labor's franking credit policy from an economic perspective, including the original purpose of the legislation.
29:16 - Why Australians shouldn't be too worried about the local investment landscape, and why we shouldn't be complacent.
32:58 - Michael shares an impressive book and a piece of research he's recently read.
38:16 - The best advice for a young investor.
40:25 - What's next for the Australian Federal Government.
Links to articles and books discussed:
The Space Barons: Elon Musk, Jeff Bezos, and the Quest to Colonize the Cosmos Hardcover. By Christian Davenport.
More information on Capital Group
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