Many of the key themes that stood out in 2022 continued to advance throughout 2023. Additional variants returned in the fall, but the impact of the COVID-19 pandemic has waned. However, most travel and transportation restrictions have been lifted and supply chains have largely recovered, although many companies are looking to diversify their sourcing to minimize the risk of future single points of failure. ing. The ongoing conflict between Ukraine and Russia continues to create global uncertainty and geopolitical instability, with recent outbreaks of violence in the Middle East.
Meanwhile, a number of systemic and regime changes are likely to take shape in the medium to long term, as identified in our paper 2024 Themes and Opportunities: The Age of Agility. Masu. Rising costs of capital and declining liquidity, evolving dynamics between cyclical and structural inflationary forces, and accelerating climate risks are driving investors to position themselves for the energy transition and understand their relationship with nature. , impacting the way we approach asset classes in the new inflationary environment.
Indeed, over the past year central banks have aggressively tightened monetary policy to levels that are more restrictive in developed countries, as they search for the delicate balance between combating inflation and maintaining financial stability. are discussed in detail in the 2024 Economic and Market Outlook.
All these developments suggest important considerations for investors from both a strategy and investment belief perspective.
