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.

History shows that high-quality companies typically perform well when global economic growth slows. Even recessions come to an end, and then it’s good to be in a position that has a longer-term perspective.

In 2022, the energy crisis, the war in Ukraine, inflation, and elevated food prices dominated the economic landscape and caused a significant decline in the bond and stock markets. However, the consumption of luxury goods was remarkably resilient.

Japan continues to be demographically challenged but is a global power house in our identified mega-trend of Productive and Digital Society with robot technologies, global MedTech champions, and high-tech components and materials providers.

The 20th National Congress of the Chinese Communist Party (aka. the Party Congress) has ended, and the overarching conclusion is that China is essentially set to be ruled by one man, with the Xi Jinping Dynasty having begun in earnest.