Invest Like the Best: Marko Papic – a Multi-Polar World
Marko Papic, partner and chief strategist at Clocktower Group, leads the firm’s research on macroeconomics and markets. Marko has spent his career at the intersection of finance and geopolitics.
Along with Russia and Ukraine, it’s clear that the multi-decade trend of increased globalization is at an end. This fragmentation could be regional, as seen with a potential alignment between Russia and China. This new partnership could prove stronger than in the days of the Soviet Union.
Meanwhile events have caused the US and EU to set aside many of their differences in the interest of global unity. That’s true even as economic sanctions could impact Western economies over the long term. Europe has to source its energy needs from more expensive sources. And the US dollar could potentially lose its dominance.
Meanwhile, high energy prices are also stalling out the green energy themes. A revolution was supposed to create new, high-paying jobs, and end dependence on foreign energy. The fact of the matter is, such a transition will take time to play out. And fossil fuels will likely never go away.
The surge in energy and other commodity prices also makes it more difficult for the Federal Reserve to perform its job of raising interest rates to combat inflation. Any move may be too little, too late, and ineffective against rising prices due to higher energy costs.
The full episode, running about 1:09:30, can be heard here.