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Mon 13 May 2024
Investors’ Outlook: May Issue
Globally, economies are strategically navigating evolving landscapes. In the United States, investment in sustainable minerals and cautious trading strategies are prevalent, reflecting a sophisticated approach to market dynamics...

Globally, economies are strategically navigating evolving landscapes. In the United States, investment in sustainable minerals and cautious trading strategies are prevalent, reflecting a sophisticated approach to market dynamics. The UK is seeing robust investment in technology and real estate, driven by London’s enduring allure as a financial center. Switzerland is focusing on innovative agricultural technologies, enhancing food security through advanced biosciences. Germany’s industrial sectors are leveraging export strengths, particularly in infrastructure, energy and water. Australia continues to capitalize on its natural resources, maintaining economic stability and supporting its rich commodity-based industries.

 

What is happening in Canada?

 

Albrecht Weller, President at Schwaben, revealed that Canada is grappling with a recession, creating an economic scenario that starkly contrasts with the enduring resilience of the U.S. economy. He emphasized the high industry costs that are currently burdening Canadian businesses but expressed optimism about potential relief arriving sooner than in the U.S.

 

What is happening in the US?

 

Lisa Morris, Managing Director at AKS Family Partners, shared insights into the current economic climate in New York, noting that the investment landscape has remained largely unchanged over the past month, with ventures proceeding slowly and a general hesitance pervading the market. She emphasized that investors are prioritizing liquidity, reflecting a broader caution driven by geopolitical concerns that are indirectly influencing business and investment decisions. Lisa highlighted the resilience of the New York investment community, despite the challenges posed by a complex geopolitical environment. Anthony Jarrin, CEO at The Cannaregio Group, also reflected on the current state of affairs in the United States, describing it as a challenging time on a social level that underscores global vulnerabilities. Despite these social tensions, he noted that economically, the U.S. is displaying remarkable resilience. Tony highlighted the U.S. economy’s healthy recovery from recent downturns, distinguishing it from other global economies. He pointed out that while the U.S. continues to navigate significant challenges like inflation, its economic strength stands out, offering a hopeful contrast to the social issues currently at the forefront. Jarrin emphasized the broader implications of these societal challenges, expressing concern about their potential to disrupt peace and tranquility both in the U.S. and globally. Albert Pezone, Founder of GP Nurmenkari Inc., discussed the investment climate in the U.S., particularly in light of election-related market volatility. He expressed a cautious approach to trading during election years, citing potential market disruptions from political incumbents. Albert outlined plans to implement short positions against major U.S. indices like the NASDAQ and the S&P 500 later in the year, indicating a strategic response to expected market conditions. Additionally, he highlighted strong investor interest in sectors like sustainable minerals and the integration of AI and robotics in mining, pointing to these areas as key focuses for upcoming investments. David Munson, President at FOI Group LLC, reported a cautious investment environment in the U.S., noting that many investors have become risk-averse due to losses in various venture investments. He mentioned that despite the high potential of early-stage invention companies within his portfolio, these firms are struggling to raise funds as investors increasingly seek safer investment avenues. This shift toward conservative investing reflects broader market trepidation, impacting the funding landscape for innovative startups. In contrast, Ron D. Vari, Founder at NewOak Capital, emphasized the transformative potential of technology in the U.S. asset management and brokerage industries. He highlighted how innovations could streamline financial services, particularly in equity and startup financing, reducing the traditional barriers and friction experienced by both institutional and individual investors. Also noted are the challenges posed by local regulations and the evolving demands of B2B marketing, which are critical in harnessing these technological advancements.

 

 

What is happening in Australia?

 

Craig Astill, CEO of The Caason Group, discussed the economic outlook in Australia, emphasizing the nation’s continued economic stability despite concerns over governmental spending. He noted Australia’s advantageous position, bolstered by its wealth in natural resources, which has helped maintain economic balance. However, Craig cautioned about the long-term sustainability of relying solely on resource-driven growth, stressing the need for fiscal prudence to avoid escalating national debt. He also suggested that the business environment could see significant shifts in the coming years, influenced by global economic dynamics.

 

What is happening in the UK?

 

Marta Albert, Principal at QG Family Office in the UK, provided insights into the current investment climate in London and beyond. She noted that despite challenges, including rising costs and a somewhat controversial political atmosphere, London remains a financial center with enduring allure. Marta highlighted a significant interest in technology and real estate investments both within and outside London, pointing out the abundance of funds in these sectors. She advised caution to those considering starting new funds due to market saturation. Additionally, Marta shared her observations on the burgeoning investment scene in Madrid, Spain, where she is partially relocating. She remarked on the vibrant energy and optimism in Madrid’s investment community, attributed to favorable tax conditions and an influx of international capital and entrepreneurs. Additionally, Birgit Vallmuur, Managing Director at TitanSwan, discussed the significant interest and investment in natural capital within the UK, emphasizing the growing sector’s potential and associated risks. She highlighted the critical need for asset managers to navigate and mitigate risks related to environmental crimes, which could jeopardize substantial investments in this area. Birgit is actively exploring strategies to safeguard these investments, reflecting a broader trend of increasing regulatory scrutiny and investor awareness in the environmental sector. Prado Bhat, Partner at PrimeBase, also shared observations on the shifting dynamics in the global technology sector, emphasizing that technology companies are increasingly resembling traditional corporate entities. He noted a significant geopolitical and economic shift towards Southeast Asia, suggesting it as a new power center in the global market. Prado, having founded and exited two technology companies, speaks from experience about the evolving nature of the tech industry. His insights reflect broader trends in technology and regional economic shifts, highlighting the anticipation of new developments as the next generation comes into play.

 

What is happening in Germany?

 

Felix Meyer-Horn, Managing Director at Aerzen, provided insights into the current industrial climate in Germany, describing it as challenging with an overall negative outlook for the economy. Despite these struggles, he noted that sectors like infrastructure, energy and water continue to perform well, largely due to their significant export activities. Felix highlighted a general sense of hesitation among professionals, which he attributed to dissatisfaction with local governance and the broader political situation affecting business sentiment. However, he mentioned that there are emerging positive trends in some companies, suggesting potential improvements on the horizon, though he stressed the necessity for substantial changes to address the ongoing issues.

 

 

What is happening in Switzerland?

 

Werner Schuenemann, Founder at Xandance & Partners, reported on the significant business opportunities emerging in the sectors of food technology and agricultural technology. He highlighted the increasing investor interest in these areas, driven by the need for innovations that enhance food security and optimize agricultural land management using technology. Werner’s focus on bioscience solutions for sustainable agriculture, including drought-resistant plants and sustainable fertilizers, points to a growing trend in investment in technologies that address global challenges related to food production and land use. Emanuele Pizzatti, CIO at SIGF in Switzerland, highlighted the supportive business ecosystem in Switzerland, particularly for sustainability initiatives. He noted improvements in local conditions and a bustling schedule of related events. Pizzatti also emphasized the growing importance of water management issues, pointing out the shift from public to corporate control of water resources, which he expects to attract increasing government and public interest.

 

What is happening in India?

 

Abhishek Rathi, Founding Partner at Fundamental Venture Capital, shared an optimistic view of India’s investment climate. Operating from India, Rathi highlighted the country’s geopolitical stability and the vibrant private investment market, particularly in the early-stage sector. He noted India’s robust economic growth, with a 7% GDP increase, and a surge in technology startups entering public markets through IPOs. Drawing parallels to the tech boom of Silicon Valley in the late 20th century, Rathi expressed confidence in India’s position as a key hub in the shift of global economic power towards the East, alongside other dynamic regions like Dubai.

 

The 172nd G.I.L.C. Summit brought together top investment professionals from around the globe to discuss the evolving economic environments across various nations. Ensure you stay ahead in the world of global finance by securing your place at upcoming Club events.

Participants mentioned in the article
Ron
Ron D Vari
Managing Partner/Founder
NewOak Capital/ Asset Management/Ventures
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