THE 3D RESET:
The world's disruptive return to the old normalThe 3D Reset explained
“The 3D Reset” refers to the three “Ds” of deglobalisation, decarbonisation, and demographics. We believe these ongoing trends have had and will continue to have massive long-term implications for the global economy. Taken together, the 3Ds are reshaping the investment landscape. Understanding the three Ds - how they affect the global economy, what that means for market volatility, and how active investors should be allocating their assets - might be the key to deciphering what comes next and where the opportunities are.
What are the 3 "Ds"?
Investment implications
A dramatic shift in market dynamics necessitates a corresponding adjustment in the investment toolkit. The 3D Reset brings new challenges, but for active and attuned investors, it may also bring opportunities. We believe a diverse range of investment solutions is required to help investors navigate the regime shift.
Inflationary forces
At the heart of the 3D Reset is the idea that these long-term trends are expected to maintain inflationary pressure over the long term. The tightness in the labor market is likely to keep prices and wages elevated for longer. Rising levels of protectionism and reshoring alongside geopolitical tensions will increase costs and create new financing needs. In response, central banks will need to battle inflation more persistently than we’ve seen in quite some As a result the trade-off between growth and inflation has worsened.
Latest thinking on the 3D Reset
6 essential considerations to help investors navigate 2024 and beyond
The new economic and investment climate is creating opportunities across a broader range of traditional and alternative asset classes.
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Glossary – 3D Reset
Scroll through our reference guide of key economic terms to better understand how The 3D Reset will shape a new economic regime