23 Sep Medium term investment returns face five key constraints
Key Points
- Five mega trends still point to risks of a more inflation prone/lower growth environment than pre-pandemic.
- These are: a move away from economic rationalist policies; the reversal of globalisation; rising geopolitical tensions; climate change and decarbonisation; as well as slowing and aging populations. A productivity boost from artificial intelligence should provide some offset though.
- But taken together and along with rich share market valuations this will likely constrain medium term superannuation returns, potentially to around 5% pa.
