Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Louis-Vincent Gave – Macro Consequences of Government Sanctions (Capital Allocators, EP.247)
Oct 10, 2022
Louis-Vincent Gave, CEO of GaveKal and an expert in macro research, discusses the ramifications of government sanctions following Russia’s invasion of Ukraine. He highlights how freezing reserves and seizing oligarch assets impact global capital markets and investor behavior. Gave critiques Western investment strategies applied to China and examines the evolving energy crisis' influence on inflation and military spending. The conversation also touches on investment opportunities in a shifting geopolitical landscape, emphasizing the importance of thoughtful governance.
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GaveKal Founding
- Louis-Vincent Gave co-founded GaveKal, a macro research and investment firm.
- He's lived in Hong Kong for 20 years, focusing on China's impact on global markets, and recently moved to British Columbia.
CYA Policymaking
- Western governments often react to crises with a "cover your ass" (CYA) mentality, implementing policies without considering consequences.
- This was evident during COVID-19 and is now apparent in the Ukraine situation, with rapid policy changes like freezing reserves and seizing assets.
Reserve Freezing Consequences
- Freezing Russian reserves sets a precedent: assets are safe only if countries behave "appropriately."
- This could push countries like China to reconsider holding USD reserves, potentially destabilizing the system.