IOC Outlook - Looking ahead to 2024
The global economy is entering a new long-term cycle. The model that has been at work for the last few decades, characterized by global growth sustained by ballooning financial and ecological debts, is reaching its limits. This opens the way to profound changes in the current economic model: the transition to a more sustainable, less optimized and globalized economic system is the only way to avoid the destruction of value.
This paradigm shift from efficiency and optimization to resilience and sustainability will lead to greater asset dispersion, higher volatility and risk premiums, and will put a new price on capital and liquidity. In our view, these developments are sources of opportunity, provided we know how to identify them. In this sense, a disciplined long-term investment strategy based on local roots and a strong alignment of interests will be essential in generating future performance.