If you believe Deutsche Bank chief investment officer Christian Nolting, pre-COVID life won’t return in 2021, though there’s a chance that it will be back sometime in 2022.
The social implications of this prediction are, perhaps unsurprisingly, devastating. Cabin fever is already starting to get to people, and it goes without saying that COVID has all but destroyed the live music and restaurant industries.
But Nolting isn’t exactly concerned with the social implications of such a proclamation. Rather, his concerns are financial in nature.
What Did The Deutsche Bank CIO Mean When He Expressed Concern About “Pre-COVID Life”?
According to Business Insider India, Nolting — who is responsible for where Deutsche Bank throws its investment dollars — says that if we, as a global society, are looking to survive in a post-COVID world, the true way forward is to adopt new policies that are inclusive rather than reactionary.
“If you see this not just as a short-term recovery issue, but also as a response to structural changes around economic and investment relationships – the “tectonic plates” on our cover – an investment response needs to be not just tactical, but also strategic,” he said.
In addition to pointing out how Asia, as a developing continent, has the potential to be the new world super-power, Nolting also says that there are specific measures investors can take in order to stay alive in the “brave new world” that exists post-COVID.
His suggestions are outlined in a series of tweets that you can see below.
How Can This All Be Achieved?
For the Deutsche Bank executive, it’s important for governments all over the world to step in and offer a balanced solution. If they fail to do so, they run the risk of seeing their entire systems fall apart.
“Escalating fiscal deficits have exacerbated an existing trend for debt levels to increase. Markets currently don’t appear that concerned about such borrowing – but don’t take this relaxed approach for granted,” Nolting said.
Moreover, the Deutsche Bank executive admits that what we are used to seeing on a global financial scale will change in the not-too-distant future.
Whereas the Western world (the United States, Europe) has long dominated the global financial scene, Nolting says that the “new world order” will see a rise of the Asian markets — the Eastern world — as the primary player on the global stage.