Political populism is constraining investment returns

AMP Capital

AMP Capital

What do the success of Donald Trump and Bernie Sanders in the US Presidential campaign, the close Brexit vote on Britain’s membership of the European Union and the Australian election have in common? They all signal some shift towards populism and support for more left-wing policies in the electorate. If this trend flows through to actual policy making it’s another reason to expect constrained medium term investment returns. It’s hard to know how far the populist shift to the left will go regarding actual economic policies. But the risk over time is that a more left-leaning electorate will mean a tendency towards faster growth in government spending; bigger than otherwise budget deficits; more regulation; higher effective top marginal tax rates; less globalisation; and tougher rules on immigration in some countries. Or it may just mean a stalling in economic reforms. Read the latest Oliver's Insights to find out what the rise of political populism means for investors. (VIEW LINK)

AMP Capital is one of the world's leading investment houses, with a 160-year pioneering heritage. Our enviable track record in real estate and infrastructure is coupled with deep expertise in fixed income, equities and multi-asset investments.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.