Ignore “tragic” politicians, care less about US-China tensions and look for value in emerging markets – that’s the take from a United States geopolitical investment strategist and author who advises global hedge funds.
“I think policymakers, politicians, leaders, authoritarian dictators, whatever you want to call them, they’re far less relevant. They’re really tragic characters in the play of geopolitics.” Marko Papic, author of Geopolitical Alpha and chief strategist at Santa Monica-based Clocktower Group, told Markets with Madison.
Papic’s investment framework focused on the constraints placed on politicians, not what they do or say.
“Politics is all about figuring out the path of least resistance and policy often follows that path.”
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While it wasn’t perfect, it gave investors “something to start with,” he said.
Papic used the strategy to successfully predict a Russian coup attempt and short commodities wheat and oil, which initially spiked after Russia invaded Ukraine.
“The way to really invest is to go against the hysteria once a negative geopolitical risk has taken place. That’s very difficult to do but it’s a rule that’s almost never failed.”
Watch Papic discuss his investment framework and the market calls he’s making now about China and emerging markets, on today’s episode of Markets with Madison above.
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Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
