Cross Asset Investment Strategy - October 2020

Friday 02 October 2020

Research / Market

Cross Asset Investment Strategy - 

October 2020 

Find the latest edition of the monthly publication of our Research Team.

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Vignette - The Day After #12
22/10/2020 Research / Market

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. We believe the Covid-19 crisis, along with other factors, will trigger a rebalancing in favour of labour over the next two decades. A reversion to the long-term average ratio of labour and capital in the share of income would probably enhance social and political stability, and would better fit with a consumer-driven growth model.