A finance frenzy
The scale, complexity and interconnectedness of global financial markets has mushroomed with modern financial architecture increasingly built on complex financial instruments that depend on liquid and continuous markets. Further impetus has come from inflationary monetary policies and the dominant central-bank belief in not leaning against financial excess.
The growth of the financial economy has outpaced that of the non-financial economy, creating an unbalanced system ripe for corruption and distrust. The scale of global finance remains much as it was in the run-up to the 2007-8 credit crisis and remains a source of systemic risk.
Our financial focuses
We tend to examine our financialisation theme through the lens of the world’s soaring levels of debt, the inflation of asset prices, and the liquidity risk still present across the world after the global financial crisis. This shift in the financial sector and its implications for the rest of the world’s industries and governments are worth keeping front of mind as we aim to use the instruments and companies in this area to generate returns.
Of course, our themes don’t exist in a vacuum
Financialisation has been made possible by technological advancements and our increasingly connected world. Our net effects theme considers the profound implications of increased connectivity for a host of industries.
State intervention has played a key role in the financialisation of the economy. What other effects does state intervention have on the investment landscape?
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
These opinions should not be construed as investment or other advice and are subject to change. This material is for information purposes only. Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those countries or sectors. Please note that holdings and positioning are subject to change without notice.