Investment Event

Key takeaways:

• President Trump chose Kevin Warsh as his candidate for new Fed Chair
• Fixed income markets were little changed on the news. The USD strengthened. Gold and silver prices fell sharply
• The pick of a perceived ‘orthodox’ candidate may temper some of the recent concerns over the erosion of Fed independence
• Nevertheless, investors still need to factor in ongoing uncertainty about Warsh’s policy stance alongside other sources of policy uncertainty
• We view it as important to “diversify the diversifiers” in the face of ongoing uncertainty – adopting an active, multi-asset approach that captures uncorrelated performance across a broader spectrum of assets