I increasingly believe that to invest in today’s markets, one needs a macroeconomic framework. Pure momentum or valuation approaches are insufficient. I have been keen to talk with people who understand the macroeconomic and geopolitical landscape we operate in and have mental models for using these dynamics to increase the likelihood of identifying risk asymmetries.

Two of my guests this year from the world of global thematic investing, David Dredge and Marvin Barth, both cited Mark Farrington as someone they refer to for insight, particularly on developments in Asia.

Mark Farrington writes about global thematic investing in his Watchtower series on Substack: The Global Watchtower, The Dollar Watchtower, and the BoJ Watchtower. Mark is as prolific as he is insightful.

It was a great pleasure to catch up with Mark for a fascinating conversation about his experience and learnings from a long career following developments in Asia —from the rise of Japan in the 70s and 80s to its lost decade and the rise of China.

In particular, I was keen to ask Mark whether Japan can normalise its monetary policy without collapsing the global financial system. Will China follow Japan into a lost decade of debt deflation? And how poorly understood Asian markets might impact our economies and financial markets in a new world order marked by the reassertion of economic nationalism.

Mark delivered a masterclass of the how’s and why’s of global thematic investing, it is an episode that should have a long shelf life. It is one of those episodes that I have learnt more from each time I have listened to it.

But of course, none of what you are about to hear is any kind of advice; it's just for your information and entertainment. Please seek personal financial advice before investing a penny in these crazy markets.

With that, please enjoy my conversation with global thematic investor Mark Farrington.

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