- Investors should focus on identifying the winners and losers, companies with the proper cash flow, business models, and partners to accelerate growth.
- Companies should diversify their portfolio geographically and look for opportunities in emerging markets such as Asia and the Middle East.
- Investors should invest in the sustainability revolution and allocate more funds to technologies that promote a greener environment.
- Inflation is a result of accommodative monetary policies and disruptions in the supply chain. The only tools available to fight inflation are monetary policy and automation.
- Investors should focus on long-term investments, looking at trends to identify priorities and opportunities. They should also prioritize investing in new technologies such as health tech and climate tech.
- AIMco is looking into diversifying from a geographical perspective, exploring new markets such as Asia, and potentially opening an office in Abu Dhabi.
Investing in today’s economy is not an easy task. Still, a panel of investment leaders shared their insights on where they see growth and hope at the session “Growth Opportunities in Today’s Economy.” The session, moderated by Maria Ramos, included Alain Papiasse, Chairman of Corporate and Institutional Banking at BNP Paribas, Stéphane Monier, Chief Investment Officer at Lombard Odier, Evan Siddall, CEO at AIMco, and Marc Antaki, Head of Portfolio Strategy at Mubadala.
Marc Antaki shared that Mubadala is a long-term investor who identifies priorities and opportunities across diverse themes such as UAE and GCC emerging markets, Asia, climate agenda, and demographics. The company prioritizes investing in new technologies like health tech and climate tech.
Alain Papiasse shared that BNP Paribas sees growth opportunities everywhere and is not limited to geographical or sectoral boundaries. The bank focuses on financing safe sectors like energy transition and the tech industry, which uses many new technologies to generate growth.
Evan Siddall spoke about how Canada is in a good place due to key sectors and its status as a resource economy with much growth. AIMco is looking into diversifying from a geographical perspective, exploring new markets such as Asia, and potentially opening an office in Abu Dhabi.
Stéphane Monier pointed out that inflation results from accommodative monetary policies and disruptions in the supply chain. He expects the S&P 500 to finish 2023 50 points lower than today and believes monetary policy and automation are the only tools available to fight inflation.
When asked how they navigate the current crisis, Marc Antaki said they focus on identifying winners and losers, companies with the proper cash flow, business models, and partners to accelerate growth. Alain Papiasse mentioned that central banks could only fight inflation by increasing interest rates and removing liquidity. Evan Siddall stated that AIMco is a long-term investor looking ten years later.
Maria Ramos asked the panel if they were confident we would win the war on inflation. Stéphane Monier said he was confident that the Federal Government would be able to bring down the inflation rate. Still, there were two alternative risk scenarios – either the FED’s policies not being sufficient, leading to a recession, or a slowdown with a lag effect.
The speakers were optimistic but cautious about the rest of the year. Marc Antaki noted that COP28 is happening in the UAE, and it is an opportunity for Mubadala to engage with thinkers, partners, and assets. Alain Papiasse said the rest of the year could be potentially bumpy, depending on when central banks pivot. Evan Siddall predicted mild stagflation for Canada and is defensive. Stéphane Monier was more optimistic and recommended that clients invest in the sustainability revolution, with a preference for Asia and the Middle East over the western world.
The session provided valuable insights into where growth and hope lie in today’s economy. Despite the challenges, there are opportunities for long-term investors who are willing to diversify and embrace new technologies.