With investors increasingly questioning how much further the AI boom can run, the implications for the world economy are as significant as at any time in the past 70 years. Three forces are converging: AI’s extraordinary appetite for capital, governments’ deepening reliance on debt-fuelled spending and political polarisation at its highest level in generations, thrown into sharp relief by the US midterm elections in November.  

The old status quo is giving way. Investment markets are repricing to a higher real cost of capital, while governments and central banks find their respective aims increasingly in conflict.

The saying ‘history doesn’t repeat, but it rhymes’ is especially relevant today. What we face is not without precedent – though that does not diminish the challenges ahead. Join us and Gerard Minack, our consulting economist and principal of Minack Advisors (formerly chief economist and strategist at Morgan Stanley), as we examine this post-election environment and its implications for asset allocation, asset pricing, returns and investment risk.