Eric Hippeau’s Post

🚀 Exciting Insights from the HSBC and Ryecroft Glenton North East roundtable Event on the Future of Work in the North East and UK Economy! 🌐 Led by our impressive Global Economist James Pomeroy Key Takeaways: 1. Embracing High Employment: Discussing the pivotal role of high employment in shaping the future workforce. 2. Automation Revolution: Exploring the shift towards automation to enhance efficiency and the changing skills of the workforce 3. Skills for Success: Highlighting the importance of equipping the workforce with skills to adapt to automated processes and AI. 4. Flexible Work Dynamics: Emphasizing the continued flexibility in work methods, locations, and hours for increased productivity. 5. Inclusive Workforce: Celebrating increased participation in the labour market by women and those with disabilities. 6. UK Economic Landscape: Analyzing the UK's demographic advantage while preparing for a potential decline in the working population as we get proportionally older 😢 7. Infrastructure and Skills: Stressing the need for improved infrastructure, technology, and skills to foster economic growth. 8. Fiscal Prudence vs. Investment: Debating the pros and cons of adopting fiscal prudence versus investment strategies, drawing comparisons with the US approach. 9. Private Funding Solutions: Exploring private-funded investment as an option for critical infrastructure development. 10. India's Economic Evolution: Recognizing India's transition from a basic service centre to a manufacturing hub to an increasingly influential offshore IT and skilled professional services provider. 11. China's Economic Moves: Understanding China's shift to leverage East Africa for manufacturing, investing in ports and railroads as enablers to growth. 12. North East Potential: Showcasing the North East's strengths in life sciences, pharmaceuticals, universities, and as an attractive living destination.💪 13. Energy Transition Triumph: Celebrating the UK's successful energy transition without heavy government intervention, with businesses and households embracing solar and alternative energy sources. 14. Electric Future: Exploring the possibility of practically free UK electricity within a decade, contingent on advancements in battery technology.🤞 Exciting times ahead as we navigate the dynamic landscape of work, economy, and innovation! 💼🌍 Thanks to Stuart McLaren Anthony Gillham Nick Johnson Andrew Cox for pulling this together and all our guests for their participation and sharing of ideas and insights. Rachael Guest Ben Foster (DipACB) Steven Peck Keith Low Peter Helliwell Kerry Scott Jon Mustard

In 2024, geopolitical instability and wars, a shifting macroeconomic landscape, and elections in 40 countries around the globe will continue to cause turbulence. To help investors gauge where future growth will come from, Fortune and @[Boston Consulting Group (BCG)](urn:li:organization:1784) have co-developed the Future 50, an annual ranking of public companies based on our proprietary, AI-driven measure of vitality. In this article, we dive deeply into the geographic distribution of growth potential by evaluating the 200 most vital firms around the globe. Read more: https://lnkd.in/eWeSHK6y

Our Managing Partner Eric Hippeau has an op-ed today in Fortune about the precipitous decline in the number of U.S. public cos over the last 40 years and why it's a concerning trend for private and public markets, as well as the economy at large. But we can reverse this trend with some specific measures. We bemoan this issue daily at our early stage VC firm, Lerer Hippeau, because it's massively influencing our companies' choices and behaviors. And more than anything, we think something enormously important is lost in the American economy if we neglect our public markets, which are uniquely democratic and critical to wealth democratization and growth in this country. Many thanks to Fortune for featuring us. Read more at link below.

As 2023 ends and we look ahead to 2024, the world and the United States continue to face a broad range of challenges—including climate change, economic uncertainty, and continued geopolitical tensions. In the face of these challenges, the US, for one, is investing trillions of dollars in public-sector capital to bolster economic security, energy security, and national security. If 2023 was a year of anticipation and planning, we at McKinsey believe 2024 will be a year of transition from planning to implementation, with more shovels hitting the ground each day to build the future American economy.    To inspire these efforts over the weeks and months ahead, my McKinsey & Company colleagues Aditya Kumar and Tim Ward introduce a curated compendium--of 13 relevant 'insights to impact' articles--from McKinsey’s Reinvesting in America Initiative. The entire 140-page compendium is free to read, share and download here: https://lnkd.in/dcJ_7TzR

Here's why 90% businesses aren't surviving in the long term. The business world isn’t a joyride with a straight road. If your business is going to survive in the long term, you must take measures to ensure that it can withstand unforeseeable challenges In March 2021, the Suez canal blockage held up an estimated $9.6 billion worth of goods each day.  Did anyone see it coming? NO COVID wiped out 95% of supply chain dependent businesses overnight. Did anyone see it coming? NO 📊 Scenario 1: Economic Downturns During the 2008 financial crisis, companies that had fortified their financial reserves weathered the storm. In fact, businesses with solid financial cushions not only survived but also thrived during the recession. They could invest when others retreated, securing valuable market share. The result? A stunning 47% increase in profitability for financially resilient companies. 📊 Scenario 2: Global Pandemics COVID-19 reshaped the business landscape. Companies with robust financial planning and cash reserves proved agile. They could swiftly pivot their operations, address supply chain disruptions, and even acquire struggling competitors. A study showed that businesses with financial resilience reported a 68% higher chance of emerging stronger from the pandemic. 📊 Scenario 3: Unforeseen Challenges Unpredictable crises can strike at any time. Take the example of natural disasters like hurricanes or earthquakes. Financially resilient businesses can swiftly recover, while others may never bounce back. In fact, studies reveal that companies with strong financial foundations are 2.5 times more likely to endure and rebuild. 📊 Scenario 4: Investment and Growth Financial resilience isn't just about surviving crises; it's about thriving. When businesses have the financial strength to invest in research, innovation, and expansion, they unlock new opportunities. Statistics indicate that companies with financial resilience allocate 50% more funds to R&D and innovation. The Bottom Line: How do you build financial resilience? -Understand and manage your cash flow -Identify new income opportunities -Work out what to invest in and how you’ll pay for it -Invest in your business during slower periods Sometimes the ROI is not clear in short-term forecasting, but the reality is it may be best for the business in the long term. If you need help with implementing sustainable business models that are resilient to any external factor, DM me. #FinancialResilience #Startups #Financialstability #Founders

As investors start off 2024 amidst uncertain market outlook, they have a lot to think about. Here's a look at five areas that could drive the markets, impact industries and shape the global economy in the year ahead.

If your LinkedIn is anything like my own, it is full of views on the Magnificient 7. Whilst there is some interesting content, there is so much more to the US market than just these 7 companies! My latest article, following my recent trip to the US, gives some insight further down the market cap, namely Mid-Caps. My key observations from speaking with C-Suite company executives and other institutional investors included: - The US economy has continued to demostrate resilience - US company outlooks are positive, with 2024 expected to be a 'normal' year despite US presidential election - Global portfolio manager remain 'long' US equities, particularly large-cap tech/the Magnificient 7 But in an era of significant concentration risk, Global Mid-Caps provide diversification benefits. Valuations for Global Mid-Caps (relative to Large-Caps) are at a record low. Thus, clients should consider Global Mid-Caps, as an asset class, as part of core global equity allocation. Our investment process of Quality, Growth and Momentum means we look for Mid-Caps that can potentially become the Large-Caps of tomorrow. Read about my recent trip to the US using the link below. Capital at risk. https://lnkd.in/ePwvJN4Y abrdn #abrdn #abrdnsmallercompanies #midcaps #investing #globalequities

In today's volatile economic landscape, American businesses face unprecedented challenges, from soaring interest rates to the complexities of global supply chains. Dive into our latest article to uncover the intricate mosaic of financial shifts and discover strategies for adaptive resilience. Don't just navigate the storm—master it with Bluprint Consulting. 🔍🌐 #EconomicTrends #BusinessStrategy https://lnkd.in/eQFAWutm

🚀 Are You Ready to Navigate the Future of Growth and Efficiency? In a world where the pace of change accelerates by the minute, staying informed is no longer just an option—it's a necessity. Let me take you through some crucial insights that could redefine the way you view the market landscape. Quality Growth is Leading the Way: High-quality growth stocks, especially in the software industry, are not just outperforming the broader market; they're setting new standards for success. Why? Because they embody the perfect blend of innovation and solid financial health. Operational Efficiency is the New Black: Companies across sectors are turning to AI and technology to streamline operations. This isn't just about cutting costs—it's about reinventing productivity for the 21st century. The Balance Sheet Renaissance: In an era of fluctuating interest rates, a strong balance sheet is more than a safety net—it's a competitive advantage, especially for large caps. Why should this matter to you? Because whether you're an investor, a professional, or just someone keen on staying ahead, these trends offer a roadmap to where the economy is heading. 💡 What's your take on integrating these insights into your strategy? How do you see quality growth and operational efficiency shaping your industry? Let's dive into this conversation and explore the possibilities together. #technology #innovation #pnwa #investing Pacific Northwest Advisory

📉🔍 Navigating Realities: Why Replicating the Last Decade's US Equity Returns Seems Unlikely 🌐🚫 🔄 Reflecting on the Past: Over the last decade The S&P 500 boasted remarkable returns, 11.9% in excess of cash, but duplicating this success demands a closer look. To recreate such an outcome, we might need to face the sobering reality that our basis has changed. 📉💡 💨 Winds of Change: Economic conditions, technological shifts, and global dynamics have evolved, introducing new challenges and opportunities. The factors that propelled the last decade's surge do not align in the same way, making it improbable to replicate those exact outcomes. 🔄🌐 📉 Temper Expectations: While dreaming big is essential, it's equally crucial to manage expectations. Unprecedented valuations pose risks, and market conditions are influenced by a myriad of unpredictable variables. A measured and informed approach is key in navigating these uncertain waters. For example the CAPE ratio (Cyclically Adjusted Price to Earnings ratio) would need to rise to 51. That's higher than it's ever been, even higher than the highest valuation before the dot com bubble. 📊🔍 🚦 Reality Check: Considering the current economic climate and global uncertainties, the likelihood of witnessing a repetition of the last decade's stellar returns appears slim. Prudent strategies, diversified portfolios, and adaptability will be essential in this shifting landscape. 🚀🌐 📚 Continuous Learning: Markets are ever-changing, and adapting to new realities is a constant requirement. Stay informed, remain flexible, and focus on sound investment principles to navigate the complexities of the financial world. 📈🔍 #InvestingRealities #MarketInsights #FinancialWisdom #AdaptAndThrive 📉💼