We emphasise the sustainability of earnings growth over the magnitude of earnings growth. Consumer Staples companies are increasingly challenged as they face cost inflation and increased sustainability costs.

A small island in Japan called Kyushu is now known as “Silicon Island” due to the massive investments from TSMC and other tech companies. C WorldWide has portfolio exposure to several mentioned companies in this Insight. Read here:

We have broad exposure and are well-positioned in our portfolios to leading companies exploiting AI technology. The question is: When will AI repeat the pattern of internet development in terms of earnings growth?

Heat pumps currently only represent approximately 13% of all heating systems in Europe and around 5% in the US, indicating significant growth potential.

We conclude that equity investors may suffer during times of high inflation but in recent history, equities have indeed worked as a hedge against inflation.