Coutts’ Higgins Says Macro Beats Politics

The video discusses the potential impacts of the French election on markets, particularly focusing on the implications of a possible exit from the euro and the reintroduction of the French franc. It also analyzes the UK market's performance post-Brexit, highlighting the Footsie 100 and 250 indices. The global macroeconomic environment is examined, noting favorable conditions for risk assets. Finally, the video provides insights into the Mexican market, considering the effects of the US election and the performance of the Mexican peso.

What could be a potential strategy for hedge funds if France exits the euro?

• Invest in German bonds

• Buy French real estate

• Short French bonds

• Invest in French equities

Why might the Footsie 250 index perform well despite Brexit uncertainties?

• Due to strong earnings delivery

• Because of political stability

• Owing to a strong pound

• Due to high inflation rates

What is a key reason for the Footsie 250's overweight in equity?

• Low tech investments

• Weak healthcare sector

• Strong financial credit

• High inflation

What is a notable feature of the Mexican peso post-US election?

• It has been unaffected by US policies

• It has started to rally

• It has depreciated significantly

• It has remained stable

Why might investors be interested in 100-year bonds?

• They have low risk

• They offer high liquidity

• They are easy to trade

• They are uncorrelated and interesting investments