After enjoying an extended period of economic growth, Australia now finds itself in its first recession in almost three decades. Like many others, we believed that this slow down in global economic growth was a matter of when, not if. COVID-19 and its impact may have been the spark to ignite the flame, but there were plenty of existing headwinds such as high debt levels, deflationary forces and rising wealth inequality which had already set the scene for an economic downturn.
Looking ahead to 2021 and beyond, we believe that this low-growth environment is here to stay. This means that investors need to be backing the one percent of companies, the extraordinary businesses which are able to disrupt legacy businesses to continue taking market share and growing profits.
Key points:
- Identifying the winners: common characteristics of companies that are well-positioned to enjoy strong future growth
- The Japanification of the global economy and what this means for Australian investors
- Lessons from previous economic crises
- It’s not a tech wreck: why 2020 is not like the dot com bubble of 2020
You can download the accompanying slides here and transcript here.
The information in this document was prepared by Hyperion Asset Management Limited “Hyperion”, (ABN 80 080 135 897 AFSL 238380) of Pinnacle Investment Management Limited AFSL 322140 for the specific wholesale investor it is addressed to. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. Hyperion believes the information contained in this communication is reliable, however, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. Past performance is not an indicator or guarantee of future performance. This document is provided to the recipient only and must not be copied or passed on to any other person without the consent of Hyperion.