CROCI Outlook: the journey towards normality?

The pandemic has created a "golden cage" made of fiscal and monetary stimulus during 2020. This is likely to continue be the main theme for this year ahead, as measures to combat the virus persist for longer than expected. Against such a backdrop, the world economy cannot afford another crisis so liquidity should remain high. We have likened the journey since the financial crisis to Odysseus’ struggle to get home after the Trojan War – it feels like the further pandemic-related stimulus is comparable the enforced captivity Odysseus enjoyed on the paradise island of Calypso, prolonged now the market has got used to floods of liquidity. Just like then, though, questions will soon emerge about the path back to normality. Depressed levels of expected rates of return for equities around the globe might tempt some investors to consider de-risking their portfolios, but are other asset classes any better? How do valuations compare to profitability levels, as well as to past levels? Please join us for The CROCI Outlook with Colin McKenzie (CROCI) and Jasdeep Hansra (UK Distribution), where we examine the status of value after a decade or more of being out of the limelight, the risk of inflation to equities, and the findings of our fundamental valuation framework on global and regional equities.