A number of mega trends are set to shape our world as it emerges from the pandemic, including disruptive forces that were already in place before Covid. For investors, this is a time to pay close attention: Uncertainty creates opportunities and to capitalise on disruption, you must be able to identify the long-term beneficiaries.
The pandemic has left investors with questions such as: Have central bank and government attitudes to managing the economy changed permanently? What about household and corporate behaviour? With new strains popping up, are we really on top of Covid? Will the health sector have to be on constant alert, permanently adjusting capacity, permanently updating vaccines?
In summary, Covid is still a huge source of uncertainty and investors may need to learn to live with it. For example, bond yields will need to adjust to an uncertain path of monetary policy. We will need to build back in the term premium that compensates investors for taking on risk for longer.
Globally, the era of loose monetary policy, low inflation and low interest rates is not over yet. However, we do expect markets to question this outlook repeatedly, meaning the road ahead could be bumpy.
In our new white paper, we set out our expectations and list the main trends that investors should take into consideration:
- CHINA
- HEALTHCARE
- TECHNOLOGY
- SUSTAINABILITY
- EQUALITY AND INCLUSIVE GROWTH
