NEW YORK (Reuters) – Social unrest worldwide is alarming some global investors, who say protests from Hong Kong and Lebanon to Chile are forcing them to be more cautious even though the impact on financial markets has been spotty so far.
Investors at the Reuters Global 2020 Investment Outlook Summit last week were particularly concerned about Hong Kong, where pro-democracy protests have been raging over the past six months.
Some said they saw a theme building up with factors such as the impact of globalization, wealth inequality and climate change creating political uncertainty over the next five to 10 years that would influence markets.
“It is a risk that is with us and at these quite stretched financial market valuations it causes us pause and leads us to be more cautious in markets than we would be otherwise,” said Dan Ivascyn, group chief investment officer at PIMCO, one of the world’s largest asset managers.
For him, “this more extreme global political friction is here to stay.” Michael Novogratz, the hedge fund manager turned crypto-currency and blockchain investor, said global protests have a unifying theme. “Globalization was the global narrative that we all bought into up until 2015,” Novogratz said at the Summit in New York.
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