Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Louis-Vincent Gave – Macro Consequences of Government Sanctions (Capital Allocators, EP.247)
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Apr 14, 2025 
Louis-Vincent Gave, Founding Partner and CEO of GaveKal, delves into the macroeconomic fallout of Western sanctions following Russia's invasion of Ukraine. He discusses the freezing of assets and its implications for energy prices and military spending. Gave also addresses how these geopolitical shifts may affect China's ambitions, emphasizing the need for unique investment strategies in emerging markets. His insights reflect a deep understanding of global economics shaped by his rich background in research and macro trends.
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Gave's Background
- Louis-Vincent Gave, of GaveKal, shared his background, from growing up in France to serving in the French army.
- He later joined Paribas and eventually co-founded GaveKal with his father, focusing on macro research and asset allocation, particularly in China.
The CYA Principle
- Western governments are reacting to crises with a "cover your ass" (CYA) mentality, implementing policies without considering consequences.
- This was evident during COVID and is now apparent with the Ukraine situation, where rapid measures are taken without proper evaluation.
Freezing Reserves: A Paradigm Shift
- Freezing Russian reserves sets a precedent for confiscating assets based on behavior, not just legality.
- This undermines the perceived safety of assets in Western countries for emerging markets like China and Saudi Arabia.