Investing in a less stable world
The world is no longer dominated by one or two great powers – other countries and power-blocs are making their influence felt.
3 min read
27 Sep 2021Markets traded around three themes in August: inflation, timing of central bank stimulus reduction and more moderate growth3 min
21 Sep 20213 min
POLITICAL AND ECONOMIC INFLUENCE
Geopolitics has become more dynamic and unpredictable for both politicians and investors. While we are data-driven investors, the increasing number of real or would-be competitors to the US merits attention given its implications for longer-term economic growth. We are increasingly taking a more nuanced view of these macro factors in our investment approach to make sure we’re alive to opportunities – and potential risks – that arise.
- The framework of global trade is becoming more complex and fragmented
- The US is backing away from its leading global role, while other countries and regions – China, India, Russia and the EU – are becoming gradually more politically and economically influential
- We’ll be paying more attention to geopolitical movements and what they mean for different asset types and industries as global relationships develop
When investing, past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.