How Will You Fare In UBS’ Taste Of Power?

Arti Mehta Reporter 21 December 2016

How Will You Fare In UBS’ Taste Of Power?

Whether you’re more “Freakonomics” than “Trumponomics”, the Swiss firm’s interactive game, developed to complement the firm’s “2017 Year Ahead outlook”, gives a fun grasp on how electorate and policy decisions affect your portfolio.

UBS Wealth Management's "End Game" gives investors the chance to build and break a nation as it takes players through a journey of policy decisions and economic uncertainties - highly timely during current goepolitical gyrations.

“Solving the world’s myriad economic problems is about trade-offs, and the choices that both policymakers and electorates make will matter a great deal for your portfolio,” said Mark Haefele, global chief investment officer at UBS Wealth Management.

Players are informed they “have just been appointed as all-commanding leader of a major country” and “have control over the monetary, fiscal, and foreign policy of [their] country”. Then the fun starts. In the context of of hypothetical situations, choices to make include:

-- To stimulate innovation and growth, do you invest in infrastructure or education?
-- To maintain growth, do you print money or allow the private sector to play a bigger role?
-- To calm the market, do you increase interest rates or maintain stimulus policies?

As this continues, a tracker reveals the effect these choices have on bond yields, unemployment, stock market performance and even debt-to-GDP ratios.

“The only certainty is that different countries will make different choices. Diversification is the best way to protect and grow your wealth in an increasingly complex world,” added Haefele.

This reporter’s own turn at the game revealed me to be a big spender with a growing economy, although future generations will have to pay back my debt - somewhat reflecting my own Christmas spending habits: spending on presents, a happy stimulated family and a booming home-life, and credit cards to pay off later.

The idea has echoes in process known as "gamification" in wealth management whereby wealth management clients can test to see how much more money they might need to save, for example, to provide for retirement at a certain date and level of income. The use of such interactive tools is seen as growing as modern technology gains hold.

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