Podcast: John Normand and the US compression trade

In this EA Forum podcast, EA Founder and Director of Market Intelligence, Dr Amrita Sen sits down with John Normand, Head of Investment Strategy at AustralianSuper.

• John does not expect a US recession, rather he sees a compression story where RoR of investing in the US is more comparable to other countries. 
  
• Fund continuing to diversify away from Australian assets, inherently exposed to China; John believes China is going through one of the world's most significant growth compressions in last 50 years. 
  
• Without government intervention to actively buy the excess properties in the market, there is no case to be overweight China structurally. 
  
• John still believes risk assets will outperform safe havens, but by less than previously as earnings growth will no longer be above trend. A ceiling on growth also constrains multiples. 
  
• Energy transition a key topic in the fund; Amrita notes clear headwinds for Chinese growth, but another supercycle cannot be ruled out given weak upstream/downstream investment. 
  

EA Forum

A space for global commodities and macro leaders to share their perspectives with EA's global client base. EA Forum features views and analysis from non-EA experts. Opinions and views expressed here are solely those of the author(s), not those of EA Group.