A paradigm shift in investing — are you ready?

Heidi Ridley and Kathryn McDonald

FROM our first days in investment management, we are rightly cautioned against proclaiming, “this time is different”. While market history doesn’t repeat, it does rhyme: the current challenges we face may be new in magnitude but not in kind. Inflation, supply chain woes, asset bubbles, prolonged bull markets, swings between globalism and nationalism, political risk — all of these represent the rough seas that we must navigate as investors.

So, it is an exceptional moment when we recognise several remarkable sea changes that will affect individuals, society, our economy, and the planet for years to come. As investors, we must differentiate between the transient rough seas that are the hallmark of equity investing and the truly rare transformational developments that will become permanent fixtures in our lives.