Secular Outlook

Pictet Asset Management
By August 1, 2022 13:49

Secular Outlook

The next five years will be an uphill struggle for investors. High public and corporate debt levels, labour shortages, potential tax hikes and increased levels of state intervention will mean slower economic growth. Add to that the prospect of prolonged geopolitical tensions and the fact that a recession over the next two years looks extremely likely. Inflation is another major problem. Although we believe central banks will eventually succeed in returning it back towards their targets, the easing of price pressures will be a gradual process. Over the next five years, inflation will on average remain higher than before and – just as importantly – its volatility will be elevated. Against this backdrop, the returns investors can realistically expect from mainstream assets will be much weaker than the historical norm. Adjusted for inflation, returns from a traditional 50-50 portfolio of bonds and equities will be at around half their long-term average.

Author Details

Pictet AM is an independent asset manager, overseeing more than CHF206bn for our clients across a range of equity, fixed income, multi asset and alternative strategies. We provide specialist investment services through segregated accounts and investment funds to some of the world’s largest pension funds, financial institutions, sovereign wealth funds, intermediaries and their clients.

Website:pictet.com

Heiko de Boer
Senior Sales Manager, Netherlands
Tel: +31 20 240 3140
E-mail: hdeboer@pictet.com

René de Wit
Senior Sales Manager, Netherlands
Tel: +31 20 240 3140
E-mail: rdewit@pictet.com

Twitter: @PictetAM_NL
LinkedIn: Pictet Asset Management Nederland

Pictet Asset Management
By August 1, 2022 13:49

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