Overcoming financial repression

“Financial repression” involves keeping interest rates artificially low while allowing inflation to erode the real value of bonds and cash.

Highly indebted governments may use financial repression to reduce their debt burdens in the years ahead.

Such policies would make it even harder to earn vital income in your core portfolio.

Financial repression thus calls for a major shift in asset allocation.

If you have excess cash, we urge you to put it to work or risk losing purchasing power.

While we do not advise complete divestment from very low-yielding bonds, we do recommend various substitute strategies involving dividends, capital markets, alternative investments, and select fixed income assets.

Download overcoming financial repression summary report


Wealth outlook 2023

Markets in 2023 will lead the economic recovery we foresee for 2024. Therefore, we expect that 2023 may ultimately provide a series of meaningful opportunities for investors who are guided by relevant market precedents. Read our roadmap to recovery: Portfolios to anticipate opportunities. 

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