Commentary

A strategic allocator's guide to productivity and profits: Executive summary

How a new regime with shifting trends and sometimes unexpected motives could influence productivity and fundamentally reshape the investment-decision process.

By: Dirk Hofschire Irina Tytell

Updated: 4/26/2023

Key Takeaways

The U.S. experienced some of the fastest earnings-per-share growth in the postwar era over the past decade, but it did so amid the slowest productivity gains in modern history.
Today, we have transitioned to a more volatile world in which persistent inflation uncertainty will likely make some key investment drivers of the prior regime—such as financial repression and increasing leverage—less effective.
In this new world, the backdrop for global asset performance is likely to reattach to core fundamentals, such as productivity gains. Understanding the drivers of productivity—and their links to profits and asset-class returns—could hold the key to successful strategic asset allocation.

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Could a new regime influence productivity and fundamentally reshape the investment decision process?

A strategic allocator's guide to productivity and profits

Could a new regime with shifting trends and sometimes unexpected motives influence productivity and fundamentally reshape the investment-decision process?

A strategic allocator's guide to productivity and profits abridged

How a new economic regime could influence productivity and impact the strategic asset allocation process.

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