Equities

A whole new paradigm: the next decade

A Whole New Paradigm - The Next Decade
Didier Rabattu - CIO, Sustainability Equities

Didier Rabattu

CIO, Sustainability Equities
Florian Ielpo - Head of Macro, Multi Asset

Florian Ielpo

Head of Macro, Multi Asset
Pascal Menges - CLIC Equities, CIO Office

Pascal Menges

CLIC Equities, CIO Office

Need to know

  • Over the past 40 years, the world has evolved to be shaped by an abnormally low cost of capital.  
  • However, we now face a combination of high inflation (1970s type), high levels of government debt (late 1940s type) and valuations above historical norms (late 1920s or 1990s type), which is unprecedented in our lifetimes.
  • Four mega excesses – economy over environment, asymmetric capitalism, demographic dividend and globalisation − have created the conditions for low or negative real interest rates in the US and Europe.1 These conditions now seem to be reversing, meaning the next 10 years could look very different.

Source: [1] LOIM, Bloomberg


In subsequent insights of this six-part report, we will explain each mega excess in more detail, as well as the consequent anomaly and mega shift.

important information.

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