A lost decade – Biden’s pyrrhic victory?

Should Joe Biden win the White House in the next election, he may only win an economic pyrrhic victory, as investors are likely to sour at the prospect of a “lost decade” for equity returns, warns Cam Hui at Pennock Idea Hub. He points to analysis that has recently emerged forecasting a bleak decade for equities, and US equities in particular, with firms such as Bridgewater Associates warning of a possible “lost decade” for US stocks owing to a retreat in globalisation. Hui believes investors are facing a low return setting over the next decade, however, as he explains, there are a number of pockets of opportunity for investors. Gold, value stocks, selected cheap foreign markets and the use of tactical asset allocation are all ways of enhancing returns in a difficult investing environment, he says.