Global Market Trends: Another Voice
By KKR
Back in April 2020, when we first began sharing our thoughts on the human tragedy and market implications of the global pandemic with our readers, we looked to other periods in history when resolve, resilience, and fortitude were required to simply ‘Keep Calm and Carry On.’
Now on the cusp of 2021, and hopefully the beginning of the end of the pandemic as vaccines and other treatments are offering hope to millions, we again pause not only to reflect on the past but to turn with more of an eye towards the future. 2021 represents a unique opportunity, a new beginning of sorts, we believe. Indeed, almost all our research at KKR tells us that we have entered a new, sustainable business cycle, and though there will inevitably be setbacks along the way, this recovery will continue to present heightened opportunities.
However, all have to be willing to approach tomorrow with ‘another voice’ with which to view the future. Specifically, we think that global allocators will need to champion investments that not only are set to thrive in a faster nominal GDP environment than in recent years, but also synch up with our six “mega macro themes”: the rise of the global millennial; the need for asset-based cash flows in diversified portfolios; beneficiaries of increased fiscal spend; domestication of global demand and supply; increased dispersions; and secular compounders/innovators.
