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The crisis has seen unprecedented fiscal and monetary policy responses around the world. So what are the implications for investments?[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22%20Greg%20Jensen%22%2C%22job_role%22%3A%22Co-chief%20investment%20officer%2C%20Bridgewater%20(United%20States)%22%2C%22content%22%3A%22Jensen%20joined%20Bridgewater%20in%201996.%20He%20oversees%20Bridgewater%E2%80%99s%20investment%20strategies%20and%20research%20efforts.%20He%20is%20also%20integral%20in%20overseeing%20investment%20talent%20and%20the%20firm%E2%80%99s%20account%20management%20and%20trading%20processes.%20In%202010%2C%202011%2C%20and%202012%2C%20he%20was%20named%20one%20of%20business%E2%80%99s%20rising%20stars%20in%20Fortune%20magazine%E2%80%99s%20Top%2040%20Under%2040.%20Jensen%20has%20earned%20a%20degree%20in%20economics%20and%20applied%20mathematics%20from%20Dartmouth%20College.%22%2C%22image%22%3A%2231892%22%2C%22linkedin%22%3A%22%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Colin%20Tate%22%2C%22job_role%22%3A%22Chief%20executive%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22Colin%20Tate%20has%20been%20an%20investment%20industry%20media%20publisher%20and%20conference%20producer%20since%201996.%20In%20his%20media%20career%2C%20Tate%20has%20launched%20and%20overseen%20dozens%20of%20print%20and%20electronic%20publications.%20He%20is%20the%20chief%20executive%20and%20major%20shareholder%20of%20Conexus%20Financial%2C%20which%20was%20formed%20in%202005%2C%20and%20is%20headquartered%20in%20Sydney%2C%20Australia.%20The%20company%20stages%20more%20than%2020%20conferences%20and%20events%20each%20year%20%E2%80%93%20in%20London%2C%20New%20York%2C%20San%20Francisco%2C%20Los%20Angeles%2C%20Amsterdam%2C%20Beijing%2C%20Sydney%20and%20Melbourne%20%E2%80%93%20and%20publishes%20five%20media%20brands%2C%20including%20the%20global%20website%20and%20strategy%20newsletter%20for%20global%20institutional%20investors%20conexust1f.flywheelstaging.com.%20One%20of%20the%20company%E2%80%99s%20signature%20events%20is%20the%20bi-annual%20Fiduciary%20Investors%20Symposium.%20Conexus%20Financial%E2%80%99s%20events%20aim%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20Tate%20served%20for%20seven%20years%20on%20the%20board%20of%20Australia%E2%80%99s%20most%20high%20profile%20homeless%20charity%2C%20The%20Wayside%20Chapel%3B%20and%20he%20has%20underwritten%20the%20welfare%20of%2060%2C000%20people%20in%2028%20villages%20throughout%20Uganda%20via%20The%20Hunger%20Project.%22%2C%22image%22%3A%2231893%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fcolin-tate-839a5a181%2F%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Key takeaways
COVID-19 has accelerated trends that we thought would play out over a decade.
The COVID-19 shock has mainly been a shock to corporations (not households), leaving a monumental hole in corporate balance sheets.
The Developed World Populism Index has spiked significantly in recent years.
It has never been more difficult to be an investor. Diversification is more important than ever but more difficult than ever to achieve.
The hole in the real economy is harder to fill than the hole in the financial economy.
Companies are recognising that if they are not willing to proactively become more purposeful, they will be forced to do so (or forced out of existence).
We can get through this difficult period – it was done after each World War, but there will be very tricky policy decisions to make along the way as policy makers will have to prioritise what they want to achieve.
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.
This paper argues that the COVID-19 pandemic is an inevitable result of globalisation and that the pandemic, in turn, has seriously threatened the world’s globalisation, but adverse effects on globalisation will be temporary.
Although governments everywhere are scrambling to contain the economic fallout from COVID-19, some are approaching the task more strategically than others. The European Union and China, in particular, are focusing on long-term investments in clean energy, whereas America is doubling down on the past.
While some degree of deglobalisation may be desirable today, this process also carries grave risks, from skyrocketing production costs to geopolitical conflict. The only way to mitigate those risks is through enhanced multilateral cooperation.
China's decision to demolish the "one country, two systems" arrangement in Hong Kong appears to be a fait accompli, and in fact seems to have been preordained. Viewed in a broader context, the move represents a major salvo in a new cold war that is already playing out across three critical dimensions.
There is a lack of understanding in investment decision-making about how big the climate crisis is which could lead to investments and risks being mis-directed, according to Professor Cameron Hepburn, Professor of Environmental Economics at Oxford University.
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