A safeguard? Performance marker? Investment universe? Marketing argument? What is the real purpose of a benchmark? And what does this notion cover that we find in day-to-day portfolio management as well as at the heart of stock exchanges and markets?
For many months now, inflation has been the primary concern of central bankers and investors. The ever-increasing pressure that it is exerting on capital has led to fears of the capital being eroded. Yet, while the world has more millionaires and billionaires than ever, it is interesting to note that much of this inflation is due to an unprecedented increase in wealth. This increase is feeding a cycle of ultra-consumerism at all levels and poses significant risks to wealthy individuals in terms of wealth preservation and development. Particularly in the uncertain environment that we now find ourselves in.
