Fidante’s second report in this year’s ‘Long View’ series investigates the similarities and differences between Japan, and four prominent Western economies
Given rising fears about a “Japanification” of Western countries, we analyse the similarities and differences between Japan and four prominent Western economies: the US, the UK, Germany and Australia. We find that demographic trends are likely to lead to slower growth, but unlike in Japan, we do not expect inflation to remain low for much longer. Over the coming decade, most Western countries should experience rising inflation and rising real rates.
This has significant implications for investors since in this environment, bond returns should be very low and value stocks may outperform growth stocks by a lower margin than in the past. The good news is that the next decade should be beneficial for real assets, such as property, infrastructure and commodities.
To read the full report click here.
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