4 years ago

Which economic and investment trends will shape the decade?

by Yves Bonzon, Group Chief Investment Officer at Julius Baer From the macroeconomy and capital markets to potential risk factors – each December we present the main forces that will shape the next decade. This year we have singled out fifteen trends. Continue reading to learn more about three of them. Background: We are shifting from the neoliberal era to ’state-sponsored capitalism’ The neoliberal era, which started 40 years ago under the Reagan and Thatcher administrations, is definitely over. We are now on a fast track toward a system that can be best described as ‘state-sponsored capitalism’. This new paradigm is a direct response to colossal shifts that globalisation, liberalisation, extreme finacialisation and digitalisation brought upon western societies. Historical secular trends 60/40 = 60% equities/40% bonds; quantamental = combination of quantitative and fundamental investing; MMT = Modern Monetary Theory; TechCare = combination of technology and healthcare, * projection Source: Julius Baer Trend 1: Rise of political triggers and decline of market signalsIn the age of state-sponsored capitalism, endogenous market signals are blurred, as government interventions steer the cost of capital. We are in the process of losing free markets, as central banks extend their asset purchases further and further along […]