Presentation overview

Power & Command – How Big Government is driving changes in asset allocation and stock selection 

Since the GFC when governments intervened to prevent financial meltdown globally the trend has been one of creeping extension of their influence across more areas of everyday life and markets: Regulations clearly needed to be tighter to prevent questionable lending. Globally financially significant institutions needed to be more robust. There was a lot to commend this initial work but then the case for Government intervention was given massive boost by the acknowledgement of the climate emergency. Thoughtful governments now mandate demanding goals be met by developed societies. This is fundamentally altering many aspects ranging from the cars we may buy, who may supply them and where they can be driven, to the way homes are built and powered, the industries that are permissible and the infrastructure that must be built. We live in a world of Big Government where policy drives not just investment but also investor sentiment. No matter what the asset class or investment process this long-term theme is a key driver. We need more than just a weather eye on the direction of government policy. Instead, a deep understanding of how it will influence the winners and losers of tomorrow. Newton Portfolio Manager Bhavin Shah discusses the nature and direction of critical policy changes that shape the investment landscape as the era of Big Government reaches its 16th birthday with no signs of stopping.