Don’t overlook the single biggest issue in the global economy

January 2025

In the flurry of President Trump-induced news, don’t overlook the single biggest issue in the global economy.

For numerous reasons – pandemic spending, protectionism, the rise of populism, aging demographics, climate change costs, the return of inflation, war – government deficits and debt have soared. As these liabilities are mechanically tied to assets, this inflation of debt has ballooned huge swaths of asset prices upwards.

That is the 800-lb gorilla in the room, however quietly he is currently sitting.

When the music stops, make sure you have enough investments that are resilient businesses, not overly fashionable and susceptible to a panicky rush to the exits, and with little reliance on debt. To us, this feels only sensible.

As always, please find our latest fund factsheet here.