Pandemic and War Lead to More Government Intervention, Challenging Investors
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The pandemic and war have led to increased government intervention in economies, reversing decades of free market policies.
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Higher government spending and debt levels will likely keep inflation and interest rates elevated compared to pre-2008 levels.
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Investors should expect lower returns from bonds as rates stay higher amid high debt levels.
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Stocks most impacted by government policies like industrials and energy could benefit more than tech stocks.
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Commodities and subsidized industries like chips may also thrive due to state support and geopolitical tensions.