By: Michael Berman
For families, their priority is always
to maintain their wealth in real terms.
And when I say real terms, I mean ahead of inflation
from 2010 to 2020,
we had a very low inflationary environment.
And also coupled by the fact
that we had some very strong returns from most asset
classes, you know, particularly equities and bonds.
We of course, have seen a significant change in the
inflationary environment since covid, uh, the pandemic
supplied demand issues has caused inflation
to, uh, accelerate.
And then of course we've had the conflict in Ukraine,
which has forced all prices up as well.
So families and now having to consider
how do they maintain their wealth in this high
inflationary environment.
And one of the worries that they are feeling at the moment
is that they're probably gonna have
to take more risk to be able to achieve that.
We believe that inflation is probably gonna remain
structurally high for longer.
The reason being is
that we are seeing higher levels of wage inflation.
We've also got the impact of decarbonization.
The move to a cleaner energy is going to cost society.
And of course, all the onshoring
and deglobalization
that we're seeing at the moment is also gonna make products
and services more expensive.