Growing populist politics have meant that policymakers will be forced into increasing unorthodox polices such a modern monetary theory, but what does this mean for traditional diversification strategies? How should investors allocate during a time of converging signals of uncertainty that call into question the recovery of the global economy?

Aron Pataki, portfolio manager, Newton Investment Management
Moderator: Colin Tate, chief executive, Conexus Financial

Key Takeaways

  • We are entering into a new cycle that is likely to see low growth and higher volatility whereby certain trends will be exacerbated such as de-globalisation and a trend towards localisation on both a national and regional level.
  • Around the world we are likely to see modern monetary theory become more mainstream as QE runs its course.
  • Many governments will look to recover from the coronavirus lockdowns through fiscal stimulus directed towards new infrastructure related to renewables energies, electric vehicles and 5G data centres.

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