... it's a matter of time
After the previous year’s negative returns in most asset classes, 2019 brought welcome relief for investors around the globe. Authorities paused on monetary tightening in the face of falling economic growth in major markets and faltering global confidence. Looking forward, the risks for investors are many. Among those in the near term are: negative yields on a fifth of global bonds, stubbornly low inflation in the developed world, growing wealth inequality, high public debt, and the lack of growth-stimulating ammunition left for central banks.
But where there is risk, there is also opportunity — a spend-heavy, yet potentially stimulative, transition to a lower-carbon future is likely to produce both winners and losers. Investors who understand these changes and position their portfolios toward the future improve the probability of meeting their objectives. Mercer’s 2020 Vision: Themes and Opportunities highlights the actions investors can consider to better protect portfolios in adverse environments or to capitalize on emerging trends.
Our Global Investment Forums 2020 reflect on these themes in the context of the current economic environment and highlight where we think opportunities exist to help position portfolios for a brighter future. Investors need to be clear on their timeframe, be prepared for business as unusual and position for climate change.
The question is not whether current economic, political, social and environmental trends will impact portfolios, but rather how and when. It’s a matter of time.
We look forward to seeing you at the Forums.
Author, Academic and Former CEO of NESTA
Geoff advises many governments around the world on issues of strategy, innovation and policy. He is the co-founder of a number of organisations, including Demos, Action for Happiness, the Social Innovation Exchange and Uprising. His books have been translated into many languages and include Big Mind: How collective intelligence can change our world’ (Princeton); The Art of Public Strategy (Oxford University Press) and Good and Bad Power (Penguin). His latest book Social Innovation: How societies find the power to change’ (Policy Press) was published in November 2019.
Members of some professional bodies may be able to claim continuing professional development credits for attending Mercer's Global Investment Forums.