Secular stagnation refers to the economic theory that growth will be persistently low for some time to come, due to an imbalance between savings and investment. If capital is saved rather than invested productive capacity lies idle, while the drag on consumption reduces demand in the economy. As a result GDP growth is reduced. As we have previously discussed, there is no historical evidence that GDP growth has a direct impact on stock market growth – in contradiction of the theorised linkage via ....
08 Sep 2020
Which alternative trusts could outperform equities?
Which alternative trusts could outperform equities?
US Solar Fund Plc (USFP:LON), 36.0 | HICL Infrastructure PLC (HICL:LON), 123 | NextEnergy Solar Fund Ltd (NESF:LON), 72.8 | Renewables Infrastructure Group Limited GBP Red.Shs (TRIG:LON), 97.2 | Greencoat UK Wind Plc (UKW:LON), 136 | NB Global Monthly Income Fund Limited Red GBP (NBMI:LON), 52.4
- Published:
08 Sep 2020 -
Author:
Thomas McMahon, CFA -
Pages:
5
Secular stagnation refers to the economic theory that growth will be persistently low for some time to come, due to an imbalance between savings and investment. If capital is saved rather than invested productive capacity lies idle, while the drag on consumption reduces demand in the economy. As a result GDP growth is reduced. As we have previously discussed, there is no historical evidence that GDP growth has a direct impact on stock market growth – in contradiction of the theorised linkage via ....