McDonald’s is a very good indicator of the global economy. If McDonald’s doesn’t increase its sales, it tells you that the monetary policies have largely failed in the sense that prices are going up more than disposable income, and so people have less purchasing power.
Our long-term Investment Megatrends
The Rising Gap between Rich and Poor
Whilst the wealthiest 1% are getting wealthier and wealthier, exactly the opposite is happening to the bottom 90%. This has resulted in a growing number of frictions in society and a rise in populism. When so many people feel that life is not as good as it once was, something will have to change, they think, even if they don’t always fully understand what it is more precisely that must change.
This has changed politics profoundly in many countries, as the populist amongst the political elite don’t say what people need to hear but rather what they want to hear. It reminds us of the last big rise in populism which occurred in the dark days of the 1930s and ultimately led to World War II.
In terms of the financial impact, populists are almost always big spenders of public money. A rise in populism could therefore lead to rising inflation over time.
Responsible investing
As part of our commitment to responsible investing, we are signatories of the UN PRI and have linked this megatrend to the following UN Sustainable Development Goals: