An “Age of Confusion” dawns for investors
The warning comes from the Dutch-headquartered asset-management multinational, Robeco.
Each year, Robeco issues a forecast for the next five years. Its outlook for the years 2023 to 2027 portrays an economic machine with multiple moving parts, not all of them acting in unison.
The list of unco-ordinated activities is long: energy and food crises, high inflation in developed countries, uncertainty in China, supply chain problems, war, a pandemic, the lingering impact of printed money and hawkish central banks.
But Robeco is clear about one thing: returns on investments will diminish, due to a risk-free rate of return falling below its long term average. When combined with the impact of high inflation, investors will find getting a good return on equities hard work.
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