Tom Clarke, co-portfolio manager of the William Blair Macro Allocation Fund, highlighted in an appearance on Bloomberg Television’s “What’d You Miss?” that central banks around the world have recently changed their tone amid ongoing low bond yields and relatively low volatility.

He explained that the European Central Bank and several other central banks, including the Bank of Canada, Reserve Bank of Australia, Reserve Bank of New Zealand, and the Bank of England, have recently communicated hawkish statements.

Clarke added, “Central banks are doing their best to increase the supply of certainty and decrease the supply of uncertainty, but they’re kind of painting themselves into a corner by doing that because the market hangs on to their every word now.”

Despite several short positions in currencies where central banks have issued hawkish statements, Clarke said he’s not necessarily concerned because these positions are balanced by long emerging markets currency exposures, which offer much larger medium-term opportunities. And he believes the big currency opportunity in the developed markets is to be “meaningfully” short the U.S. dollar.

But Clarke said monetary and fiscal policies, which influence currency prices, are going to remain broadly supportive of the U.S. dollar for a little while longer. As a result, Clarke said the portfolio’s short U.S. dollar exposure has been muted. “Ultimately, that will swing around, and I think the market is probably not that well prepared for substantial euro gains,” he said.

In regards to the overall United States market, Clarke also discussed his views on the so-called Trump trade, which he says has been unwound as the market observes the slow, labored progress of policy channels. He believes that issues with greater support, such as infrastructure spending or modest tax cuts, may have a higher chance of coming to fruition and concludes that, “any stimulus to the U.S. economy will likely be quite big and rather late.”

Watch Tom Clarke’s Bloomberg Television “What’d You Miss?” interview

 (Segment starts at 27:45)

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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