First and foremost, low productivity growth leads to low GDP growth, which again leads to low growth in corporate profitability. An obvious implication of that, combined with my findings in this chapter, is that investors should limit their beta exposure. Much more about that in chapter 12 – all I wish to say now is that taking broad market risk is not likely to be particularly rewarding in an environment of energy producing countries “confiscating” an ever larger share of the capital available.
