Large US companies have dominated global equity markets for the past decade. Now, however, a new era has dawned, says Bob Armstrong, investment strategist at wealth manager Schroders.
In order to outperform, investors should buy the losers of the past economic cycle.
The investment strategist has identified four asset classes that he believes will be the next leaders.
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As the economy heads into an imminent downturn, many of the characteristics that have characterized markets for the past several years have faded. The driving force that investors should focus on is the shift to a higher world Inflation and a more restrictive monetary policy. And for all investors hoping for a speedy return to business as usual, Bob Armstrong has bad news.
“When we talk about regime change, we mean moving out of a low-inflation world, low interest rates and central bank easy money policies to a world that looks almost the complete opposite,” said Armstrong, investment strategist at Schroders, a wealth manager that has around $939 billion under management. “We simply don’t believe we can return to a zero interest rate environment as there are structural forces at play that will lead to persistent inflation.