All this may change, says George Efstathopoulos, portfolio manager and co-head of multi-asset research at Fidelity International. “We’re moving into a new phase,” says Efstathopoulos at the fund house’s conference on June 11, pointing to data points such as global fiscal spending. “We are seeing governments spend as they have never spent before.”
As the world enters a new phase, the playbook investors subscribed to two decades ago may no longer hold.
The last 20 years of rapid globalisation led to disinflation and ultra-low interest rates. The period also saw the rise of US exceptionalism, a bull market in bonds, particularly in the late 1990s.
