- The day after #4 - Inequality in the context of the Covid-19 crisis
The day after #4 - Inequality in the context of the Covid-19 crisis
Wednesday 27 May 2020
In this paper, we explain why and how we expect the COVID-19 crisis to accelerate this phenomenon in the months and years to come, and also present action levers for investors. Indeed, COVID-19, like all major pandemics in this century at least, is likely to push inequalities higher, in a context where inequalities were already becoming a major issue for societies, economies, and consequently investors. This is crucial because the short-term responses from public policymakers, if they take place, will undoubtedly reshape the economic landscape, in terms of fiscal policies and redistribution, wage policies, regulation, consumer habits, and so on. In this environment, investors will need to include the “inequality” dimension in their analysis of companies, and their engagement policies.
In a forthcoming publication, we will explore the reasons why the COVID-19 crisis could result in the merger of social and environmental issues, and how investors can integrate this new trend.
For several years now we have argued that the social theme, and in particular the issue of social inequality, was becoming a major issue for various global economies and for investors, both institutional and retail.
Investment talks - Time to reconsider US growth and value?
The outperformance of growth stocks over value stocks has reached record levels, as has the valuation gap.
The day after #12 - changing shares of labour and capital incomes: what implications for investors?
The share of national income that is distributed to labour vs. capital has fallen to historically low levels in several advanced economies, such as the United States and the United Kingdom.
Why investors should care about ESG trend in US equities