The macro nightmares keeping this European investor up at night

A lack of growth in global productivity is even more of a worry than the impact of rising interest rates, according to Hermes Sourcecap CEO Andrew Parry.

Speaking at Investment Week’s Senate conference, Parry, who manages European equity alpha strategies, said there will be a shock to economies and markets when central banks return interest rates to more normal levels. However, this is not the greatest worry that should be on investors’ minds, he argued. Of more concern is the fact global productivity has dropped off a cliff, and there is no clear indication of where economic growth will be found. “What is keeping me awake at night is the lack of global productivity. Where is long-term growth coming from? If the cost of capital goes up...