Reflation has emerged as a key topic of discussion in the financial markets. Past experience of reflationary phases shows that – in the great majority of cases – although market volatility rises, equities deliver a clearly superior overall return in the medium term compared to bonds. This is a common phenomenon in situations where inflation rises from a low level and is accompanied by strong economic growth that boosts corporate earnings. Given this scenario, it would come as no surprise if impressive medium-term global value stocks with relatively cheap valuations in a historical comparison were to perform impressively.

A frequently heard discussion in the investor community is the question of “value” or “growth”. In other words, should investors opt for equities with historically low valuations or historically above-average business growth? In this debate between value and growth, balanced consideration of various aspects with an emphasis on robust companies looks like the sensible medium-term strategy.

We are currently living through an era of change, in which a clearly identifiable shift in social attitudes is evident. It involves a more conscientious lifestyle and a desire for greater transparency and disclosure.