Talking Point

How to invest in a world of slowing growth

27/03/2014

In the absence of a productivity miracle, demographic trends mean that economic growth in the developed world will slow. This need not be a disaster for equities in the long run, but is likely to result in a painful adjustment period for many stocks. We believe that this will create more opportunities for alpha generation, with the best returns likely to come from companies that can achieve sustainable growth. A thorough understanding of demographic drivers, combined with in-depth fundamental analysis, will be essential for identifying growth gaps and picking stocks.

Read more

Important Information:
Opinions, estimates and projections in this article constitute the current judgement of the author as of the date of this article. They do not necessarily reflect the opinions of Schroder Investment Management Australia Limited, ABN 22 000 443 274, AFS Licence 226473 ("Schroders") or any member of the Schroders Group and are subject to change without notice. In preparing this document, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this article. Except insofar as liability under any statute cannot be excluded, Schroders and its directors, employees, consultants or any company in the Schroders Group do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this article or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this article or any other person. This document does not contain, and should not be relied on as containing any investment, accounting, legal or tax advice. Schroders may record and monitor telephone calls for security, training and compliance purposes.