Most investors are aware that COVID-19 is accelerating economic forces such as indebtedness, low interest rates and asset price inflation. But there is perhaps less awareness of another powerful trend that COVID is also accelerating: the ‘Gilded Age’-style economic inequality that has been emerging in recent decades.
Inequality is an important consequence of our economic system, and we see it becoming more extreme in a post-COVID world.
Growing inequality will lead to slower economic growth, even more indebtedness, increased financial risk, and greater political instability. These are all factors that will have a significant impact on investors’ portfolios.
Inequality creates winners and losers. And there are key steps that investors can take to be on the right side of these changes – to not only protect their portfolios from accelerating inequality, but also generate strong investment returns into the future.
This is exclusive content to subscribers on rogermontgomery.com. View the full article via your subscription or sign up for access.