The aim of this book, published in the summer of 2021, is to review how to build a portfolio at a time of rising geostrategic strife, and when very low interest rates and stretched valuations on most assets announce constrained returns for most assets over the next decade.
Crises often end up acting as accelerants to underlying trends.
For example, the 2008 US mortgage crisis triggered an acceleration in the globalization trend that had been unleashed in 2001 when China joined the World Trade Organization. After all, in the wake of that financial crisis, the policy responses to a collapse in global growth were:
Today, just as the mortgage crisis amplified the trends that predated it, the same is true of the current Covid-19 crisis. These trends include:
Deploying capital in an efficient way against this backdrop is a true challenge.
The aim of this book is to address this challenge.