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How are investors tackling the issues of de-globalisation and the impact on their portfolios?[vc_quotes layout=”accordion” 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title=”Speakers” el_class=””][vc_quotes layout=”accordion” 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title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Key takeaways
Kate
One of the mistakes we made at the Bank of England was that we thought the GFC would be over more quickly and we thought we could fix it on our own.
The GFC wasn’t really a global crisis. This time the crisis truly is global, and it’s more important that we get it right.
Central banks are less relevant in the pandemic because this is not a banking crisis. Thus far, policy response has broadly been viewed in a favourable light. Going forward policy may be less popular which will provide a significant challenge. Central banks will be concerned about the potential for stagflation
Do we really need the government to play a bigger role? The private sector has been remarkable throughout the crisis and they should not be taxed out of existence or prosperity to pay for the stimulus measures.
James
This is the most difficult investing period of my 30-year career because there is so much uncertainty. Monetary policy is a blunt instrument and has probably reached its peak effectiveness. This contributes to significant policy risk.
We shouldn’t be debating MMT, we should be debating the governance around it.
It is easy to talk about building a portfolio that is resilient enough to withstand any environment but this is getting harder and harder.
Given that many defensive assets don’t earn a sufficient return, balancing portfolio resilience and return can be problematic.
Olivier
There is much cause for pessimism:
Asset classes are exhausted and expensive in part because our frame of thinking is outdated.
Trust between nations is one of the most problematic issues.
We have realised that we have been short-changed by China.
We will have to choose between the US (who are letting us down) and China (who will not be a better master than the US).
Civil unrest continues and populism remains to be about me, me and I.
The EU suffered through the GFC (even though it started in the US) and also through COVID-19 (even though it started in Asia).
The Florida State Board of Administration has made some strategic moves to take advantage of opportunities in the dislocation, including in private equity, distressed debt and active listed equities.. But CIO, Ash Williams, is concerned about the underlying real economy.
How can investors work together to combat inequality? In this podcast episode Amanda White speaks to the president of CalPERS, Henry Jones, about his own experience and the fund's journey in tackling diversity and inclusion, in particular issues of racism.
This episode explores the key pillars of a sustainable recovery including the three important long term trends that need to be addressed climate change, loss of biodiversity and inequality.
It explores the key role for the finance industry which includes building new models that are not only about maximising monetary profits but also transition theory, and the value of ecological and social capital.
COVID-19 has delivered an enormous global shock, leading to steep recessions in many countries. The baseline forecast by the World Bank envisions a 5.2 per cent contraction in global GDP in 2020—the deepest global recession in decades.
Nigel Topping who was appointed by the UK Government as the High Level Climate Action Champion for United Nations climate talks, COP26 joins Fiona Reynolds, chief executive of the PRI, in conversation with Amanda White, editor of Top1000funds.com This episode focuses on climate change and how, amongst and despite, the short-term focus of this COVID-19 crisis, we can mobilise government, business and investors into action around this important issue of climate change.
The global COVID-19 pandemic has highlighted the need for better risk management tools to handle longevity and ageing. This paper by Wharton's Olivia Mitchell, offers an assessment of the status quo prior the coronavirus; evaluates how retirement systems are faring in the wake of the shock; examines insurance and financial market products that may render retirement systems more resilient for the world’s ageing population; and looks at the potential role for policymakers.
For the economic recovery from the COVID-19 crisis to be durable and resilient, a return to ‘business as usual’ and environmentally destructive investment patterns and activities must be avoided. To avoid this, economic recovery packages should be designed to “build back better”.
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