Seven themes shaping financial markets and investments
By Kirsten Hastings, 19 May 16
The long term trend of easily securing healthy returns is coming to an end and investors now face the challenge of how
to generate reliable capital growth and income. Aviva Investors has identified seven drivers of long term investment returns. They can be seen by clicking through the following pages.
The global financial crisis dislocated existing political orders as well as economies. Rising unemployment, falling living standards and widening inequalities between rich and poor have resulted in greater geopolitical instability and a rising tide of nationalism.
Consequently, the world seems to be tempted to move away from trying to tackle problems – such as the Syrian civil war or the European migrant crisis – and appears to want to collectively move towards taking a more nationalistic approach.
That development has been reflected in the US presidential campaign, the rising popularity of nationalist parties in Greece, Spain and Portugal, and in the UK’s referendum campaign on EU membership.
At the same time, the rise of China and an increasingly assertive Russia are leading to a multi-polar world, which is exacerbating geopolitical tensions and creating potential flashpoints in many regions.
Political and geopolitical uncertainty results in market volatility, as seen with sterling in the past few months.
Tags: Aviva | China | Federal Reserve | US
