What do superstars, inflation and sustainability have in common?
Investing is about opportunities and threats: benefiting from the former and avoiding the latter. Underlying any decision is analysis and awareness – and so it is with the superstar company phenomenon: some ‘masters of the universe’ are worth having a look at. Caveats apply, one being that it is not just size that matters.
Equally, we are all aware that inflation is now elusive, but our analysis shows that the forces that can fan it could easily be stirred into action.
Talking about action, we present the latest views on the urgency of the sustainability issues that asset owners, society and the world need to tackle. Of course, savvy investors can see an opportunity here.
Typically in control of their markets and pricing, often at the forefront of innovation and frequently eager to expand, superstar companies represent both opportunities and threats when it comes to investing.
Reflation could be around the corner. Whether it actually appears depends on factors such as supply shocks, de-globalisation, fiscal stimulus and signs of economic recovery.
Governments are focusing on ‘real economy outcomes’ and increasingly are supported by investors and facilitated – perhaps not quickly enough – by regulators.
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