Han Dieperink

Never before have there been so many elections in a single year, and yet another one looms.

There have been many criticisms of capitalism in recent years. These were mainly attempts to get rid of neoliberalism that relied on the solving power of the free market.

In practice, many neoliberals have distanced themselves from the idea of a “natural” free market. For these neoliberals, the market exists thanks to a government that regulates property rights, makes provisions for international trade and also fuels the competitive spirit. Everything and everyone has to compete with each other, even in terms of utilities and the welfare state.

Inflation is rearing its head again, and many fear a rerun of the 1970s scenario. But here’s the catch: the world today is vastly different from back then, mainly because of our access to information. It’s a game-changer. Think about it: a smartphone user today holds more data in the palm of their hand than the US President had in the early 1980s. Knowledge about inflation isn’t just abundant—it’s at our fingertips, dramatically altering how we deal with economic crises.

In the financial markets, geopolitical risks often exhibit a binary nature: for a long time, they pose no issue until suddenly, they do. Consequently, the relationship between geopolitical risks and the financial markets’ response is not straightforward. This complexity partly arises because these risks usually stem from singular events, which markets are adept at overlooking. In this context, possession often marks the end of interest.

Money’s gotta move—it’s the backbone of our economy, and the speed at which it zips around, known as the turnover or circulation rate, tells us a lot. It’s all about how often a dollar is spent in a certain timeframe. When times are good, money flows like a river—transactions aplenty. But in rougher waters, that river slows to a trickle as folks hold tight to their wallets. Lately, after a sluggish spell, we’re seeing that flow pick up speed again.

Chinese stocks are the opposite of US Big Tech stocks in almost every way. They are cheap, but nevertheless unloved.

Those looking to invest in emerging markets can even choose a variant of emerging markets ex-China these days. Consequently, global equity portfolios hardly contain any Chinese stocks anymore. This means that just a little bit of good news can cause a sharp price recovery. The time has come to include more Chinese equities in portfolios.

On Tuesday the eight-day People’s Congress in China, an annual parliamentary gathering drawing thousands of delegates from across the nation, kicked off. Premier Li Qiang will address the congress, detailing targets for economic growth and military spending. This year holds added significance as it marks the 75th anniversary of the People’s Republic, prompting a reflection on its achievements.

This year commemorates the 25th anniversary of the euro, but the festivities are notably absent. In times gone by, the Dutch guilder stood as a robust currency, challenging even the Swiss franc. However, those golden days are now but a memory.

The landscape of the technology industry has been dramatically reshaped since the onset of the coronavirus crisis, with big tech companies witnessing their operating profit margins leap from 24 to 29 percent. In stark contrast, other companies have seen a decline of two percentage points in the same period. This trend, far from fostering competition, is solidifying a ‘winner-takes-all’ economy.

The ongoing war between Russia and Ukraine has accelerated the exodus of industries from Europe, a trend that began long before the conflict.