Secrets Of Success: Don’t panic; we’ve been here before

There are several good reasons for thinking that a repeat of the horrors of the 1970s is unlikely this time around. If logic prevails, neither producers nor consumers of oil should want to throw the world into a renewed oil-induced recession. Although it is rising, inflation isn’t yet out of control. There is, however, a lot of complacency, as reflected in the still unprecedentedly low risk premiums on many assets.

For investors, the dramatic globalisation of markets is a further potential line of defence against a meltdown of the kind that was seen in the 1970s.

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