The statements below are an extract from the Oliver article:

More constrained capital growth

What's more, the capital growth potential from growth assets is likely to be constrained relative to the past, reflecting a number of megatrends, some of which have been reinforced by the coronavirus pandemic:

An increasing reluctance by households to take on more debt.

An ongoing retreat from globalisation, deregulation and small government in favour of populist, less market friendly policies.

Rising geopolitical tensions - notably as the US attempts to constrain the rising power of China.

Aging populations and slowing population growth - resulting in slowing labour force growth.

Growing online retail sales and "work from home" will impact retail and office property space demand but I suspect this will see spending diverted to show up elsewhere in the economy.

Of course, continuing technological innovation and automation as well as rapid growth in Asia and China's middle class will likely work to boost growth. But the net impact is likely to be more constrained global economic growth.

Question Thread 1:

In this extract, Dr Oliver sets out several factors that, in his opinion, will likely influence capital growth potential. Some are positive influences and some are negative influences.

Select ANY SINGLE factor for comment. You might agree or disagree with the opinion expressed by Dr Oliver. In your post comment on the views expressed by Dr Oliver OR posts made by other students.

so the answer is Select ANY SINGLE factor for comment, show your opinion

here is from other students answer

Re: Thread 1

by Charlotte Wilson - Friday, 8 January 2021, 9:26 AM

Dr Oliver comments on the role of technological innovation for providing a boost to capital growth. I agree with this opinion.

After completing the unit content for these topics, I researched some exchange traded funds, particularly Betashares. In terms of Australia, BetaShares offers the "ASC Australian Technology ETF". The ETF appears to be experiencing a strong recovery after the market crash when coronavirus hit. Their highest weighted investment is in Afterpay, which is beneficial for people experiencing financial hardship during the recession and is a tech share offering potential for good capital growth. Similarly, on the international side of the market, BetaShares offers the "Asian Technology Tigers ETF", this provides an opportunity for capital growth due to "Asia's younger, more tech savvy population" (BetaShares, 2020).

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Re: Thread 1

by Emily Kos - Friday, 8 January 2021, 9:28 AM

Rising geopolitical tensions has created a very notable and negative effect on Australian as China being one of our major exports affecting our capital growth potential in the wine and meat industry negatively

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Re: Thread 1

by Tongtong Wang - Friday, 8 January 2021, 9:50 AM

I agree with Dr Oliver's opinion that the aging populations and slowing populating growth will have negative influences on capital growth potential. The age structure of the population will affect the total supply of labour resources, and the labour force is the most important factor of production on economic growth. There are more retirees than the newly recruited labour force, resulting in a labour shortage, causing the social productivity to be insufficient thus influence on capital growth potential.

Moreover, it will change the direction of social resource allocation. The growth of the elderly population will increase pension expenditure, medical and health services which will increase financial pressure. At the income level, the economic growth slows down, and the tax base and fiscal revenue will decrease.