Regime shift: the market and economic implications
Since the pandemic most major economies have been confronted with an old foe: inflation. This, in turn, has caused central banks to raise interest rates. While higher rates are a conspicuous part of the change, we believe they are only one of several powerful forces now shaping the global economy, markets and society. Together we refer to these forces as regime shift.Regime shift: investing into the new era
As this economic cycle ends, we shouldn’t expect to see the patterns of the past decade repeated. A new regime in policy and market behaviour is unfolding which investors need to understand if they are to find the best opportunities and safeguard their portfolios.
Regime shift: what it means for strategic asset allocation
In 2022 both equities and bonds fell in tandem, raising questions about the function of these assets within portfolios and their correlation. Should historic approaches to portfolio construction now be reconsidered?
Regime shift: central banks will prioritise inflation over growth
Inflationary pressures mean monetary policy must be tighter and more restrictive than it has been in the recent past. Higher for longer interest rates will be an important feature of a new regime in policy and market behaviour.
Regime shift: the return of “fiscal activism”
Tax and spend policies are back as governments attempt to ease the effects of higher inflation. We expect more active fiscal policy to be just one aspect of a new regime in policy and market behaviour in the years to come.
Regime shift: new world order will challenge globalisation
Gains from globalisation peaked around the start of the new millennium and a shifting balance of geopolitical power now risks unpicking them. These changes have important knock-on implications for corporate behaviour and are a key aspect of a new regime in policy and market behaviour.
Schroders TV: Regime shift - is technology our saviour?
Major structural shifts of the past few years look set to challenge corporate profit margins. In this latest Schroders TV episode our Senior European Economist and Strategist Azad Zangana explains how firms have one clear route to increase productivity: technology.
Regime shift: the accelerating response to climate change
A new regime in policy and market behaviour is driving action to head off unchecked global warming. This is perhaps most clearly seen in the energy security issues highlighted by Russia’s invasion of Ukraine, which are adding urgency to efforts to transition to green economies.