Maggie Lake Talking Markets
Episode 49: The Great Rotation Into International Stocks Has Barely Started. With Vincent Deluard.
May 7, 2025
Vincent Deluard, Director of Global Macro Strategy at StoneX, joins to dissect the intricate global economic landscape. He boldly claims the 2% inflation target is no more and critiques the anticipated 2026 rate cuts. Deluard stresses that the migration towards international stocks is just beginning, prompted by shifts in investor behavior fueled by fears surrounding the dollar. He also uncovers how negative interest rates abroad, particularly in Switzerland, could boost investments in emerging markets like Brazil.
36:40
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Quick takeaways
- Vincent Deluard argues that the 2% inflation target is unrealistic, signaling a shift in investor outlook and strategy.
- The podcast highlights a growing rotation towards international stocks, as investors seek better opportunities amidst bearish sentiment toward U.S. assets.
Deep dives
Fed's Recent Stance and Market Impact
The Federal Reserve recently opted to keep interest rates steady, with indications that both economic and inflation risks are on the rise. Amidst this uncertainty, U.S. stocks ended with gains, although the market remains cautious about future monetary policy changes. The anticipation around potential rate cuts and the economic outlook following various tariff discussions further complicates market sentiments. Observations point towards an ongoing 'wait and see' approach from both investors and the Fed, reflecting a broader struggle to predict the economic trajectory.
