Investing in a new era
Investing in shortages and security
The last twenty years were marked by several dominant global trends: disinflation, ultra-cheap/free money for borrowers, and the global production of raw materials and goods & services that suppressed prices.
Since 2021, there has been a 180-degree turn. The COVID-19 pandemic, the ensuing economic stimulus and escalating geopolitical tensions have ushered in a new environment of high inflation, largely on the back of a shortage of cheap energy and other commodities, sharply rising interest rates, and a reversal of globalisation in favour of nearshoring. These shifts are not temporary but structural in nature. The new economic era requires a completely different investing mind-set. We see investment opportunities in energy production & infrastructure, food & water security, cyber security, reuse/recycling, and in industrial automation.