Alex Price, Chief Executive at Ashen Capital shares his thoughts on America’s recent election.
Having just finished studying an MA in international conflict at Kings College, I believe that the election of President Trump and his “America First” policy is further proof of the wider trend towards protectionism within society, politics and economics in the West.
It is a sign of growing anger at our economic decline, high national indebtedness and growing inequality. It also reflects the actions of geopolitical competitors such as China and Russia, who have been engaged in a hybrid campaign designed to undermine democracies. This includes the manipulation of information that we consume across social media whilst controlling commodities and critical infrastructure, as well as supply chains. However, in reacting to these national and international problems, there is a danger that the Western electorates ignore the wider global issues at stake. Principally, that of an unplanned exponential growth in artificial intelligence and the splintering of a collective action to arrest climate change.
In the long term it may be that AI can solve the issue of climate change, but don’t plan on this. Don’t invest into flood affected areas but do think about access to power as much as access to human transport.
Putting aside the long-term ramifications, in the next few years we will see strong growth in the West as governments de-regulate internal markets, are more assertive about national interest, replace “soft power” with defence spending and become more protectionist. The changing climate will also see more migration to the West from increasingly uninhabitable places like parts of Africa and SE Asia. What does this mean for UK real estate?
- Investors should allocate into the residential sector to meet the excess demand.
- Investment into land and industrial assets should be a priority, as we will need to produce more domestically and onshore supply chains.
- International investors will target London as it provides a tangible store of wealth, in a legally robust environment.
