The K is not OK – The Property Chronicle
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The K is not OK

The Fund Manager

The consensus is that we are in a K-shaped recovery – that means winners and losers. We are not all in this together.

The unique shape of the covid-19 crisis and accompanying recession has meant some industries have thrived whilst others have dived. In caricature, everyone now uses Zoom and Peloton, while offices and gyms were forced to close.

What does the K mean? Online shopping wins, traditional retailing loses. Commercial property such as offices and shops lose, but logistics warehouses thrive. City apartments struggle, suburbs with gardens boom. The digital economy beats everything.

Size too has been an important factor – large companies with access to the corporate bond markets have been able to take advantage of easy money policies. Smaller companies and start-ups surviving on a shoestring have been starved of the oxygen of cash flow. As a result, the big have gotten bigger.

Unfortunately, the K applies to people too. Those least able to bear the burden have carried the cost of the covid crisis. Low earners have had a 25% hit to earnings. Most readers of the Green Line will be educated, digital native, knowledge workers who mostly have seen their earnings unaffected.

The Fund Manager

About Duncan MacInnes

Duncan MacInnes

Duncan joined Ruffer in 2012. He graduated from Glasgow University School of Law in 2007 and spent four years working at Barclays Wealth and Barclays Capital in Glasgow, London and Singapore. Duncan is a CFA charterholder. He is co–manager of Ruffer Investment Company.

Articles by Duncan MacInnes

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