Five ways to build investment portfolios amid growing inequality
Most investors are aware that COVID-19 is accelerating economic forces such as indebtedness, low interest rates and asset price inflation. But there is perhaps less awareness of another powerful trend that COVID is also accelerating: the ‘Gilded Age’-style economic inequality that has been emerging in recent decades.
Inequality is an important consequence of our economic system, and we see it becoming more extreme in a post-COVID world.
Growing inequality will lead to slower economic growth, even more indebtedness, increased financial risk, and greater political instability. These are all factors that will have a significant impact on investors’ portfolios.
Inequality creates winners and losers. And there are key steps that investors can take to be on the right side of these changes – to not only protect their portfolios from accelerating inequality, but also generate strong investment returns into the future.
Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Luke Joseph
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Good to see you have exited your Chinese stocks. I was beginning to question your morality.