Some key drivers of global equities for 30 years are likely to reverse in the next decade, potentially queering the pitch for equity investments.
Geopolitical risks, higher interest rates, China’s slowdown, and higher environment-related costs are likely to drive up the cost of capital, according to a report by Kotak Institutional Equities (KIE).
The report said the past three decades have been benign for global equities, as it was a period of calm after the fall of the Soviet Union in the early nineties. Now, there is a risk of geopolitical tension due to the increasing competition between China and the United States for global dominance. China and Russia want to reverse the alleged wrongs by the US and the