Vimal Gor, Head of Bond, Income and Defensive Strategies at Pendal Group, says there’s just one fundamental driver of all asset prices. That driver is liquidity and Gor says that the current investment backdrop makes him feel the most bearish he's been in 2 years. 

“It’s quite clear that when you look across the world right now that there is a tightening credit environment. That tightening credit environment brings two things. It brings lower asset prices generally and it always brings higher volatility.” 

In our first deep dive video for 2019, we explore the ‘big picture’ factors that will impact asset markets in the year ahead. Fortunately, it's not all ‘doom and gloom’, with Vimal striking a line through several headline issues he says investors need not worry about. He also nominates the asset he thinks will deliver the best ‘risk-adjusted’ return in 2019. 

Topics Discussed 

  • The single biggest driver of all asset prices and the implications of a tightening credit cycle.
  • Why the US / China relationship has become too much of a focus.
  • A slowing global growth outlook and how this is feeding into his bearish outlook.
  • Why the world simply can’t handle higher interest rates.
  • The asset class most likely to deliver a positive return in 2019.
  • The asset class most likely to deliver a poor return in 2019. 

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Adam Easter

A great interview thanks gents. I loved Vimil's ability to break down complex matters into a simple paragraph for my blockhead to understand.

James Marlay

Thanks Adam, he definitely helps to focus your attention on the few big picture issues that matter. Cheers, James

Adarsh Gowda

Excellent quality content and perspective from Vimal. We need more of these big picture discussions especially given the macro environment is what is mostly that will shape the next 12 months. Great work James!

Chi Kiet Chau

Great interview and insight how to think about the defensive part of the portfolio in the current environment.

James Marlay

Hi Ardash and Chi Kiet, thanks for the feedback and glad you got some useful information from the interview.

Ivaylo Vasilev

Great interview and very important comments from Vimal! Appreciate his experience and "macro level" ideas.

Matthew Clements

finally got to watch this and glad I did. Compulsory viewing. Thanks James and Vimal for these insights.

James Marlay

Thanks for the feedback Matthew, glad you enjoyed the session.