Carmignac CIO's three silver linings in the face of market chaos

'Less disruption than feared'

Édouard Carmignac, chair and CIO of Carmignac Asset Management, said he is still seeing numerous silver linings despite the volatility that has gripped markets since the start of the year.

In a letter to investors, he said that although it is understandable to be alarmed in light of the many uncertainties facing financial markets, these mainly stem from three factors that could end up being "less disruptive than feared". Firstly, he noted that inflation running at nearly double digits in the US and Europe has led to central banks to introduce "highly contractionary" monetary policies, to the point where Federal Reserve chair Jerome Powell now claims he is not uncomfortable with running the risk of a US recession. Economists warn markets are 'too optimistic' about Fed pi...