Two emerging shifts, one in a small Central American country, the other in the financial habits of a global generation, are already challenging long-held assumptions that have shaped both policy and portfolios for decades.
The first comes from El Salvador. A decade ago, it had one of the highest murder rates in the world. Today, that rate has dropped below the United States. The driver? A controversial government strategy involving mass incarceration and a dramatic extension of state control. Civil liberties have been curbed, legal protections suspended and the prison population has soared, now the highest per capita in the world. But domestically, the model has proven popular. Crime has fallen, public order has returned and electoral support for the president has surged.
The second shift is equally significant. For years, the dominant narrative around younger generations focused on impulsivity, high spending and financial fragility. Recent data paints a different picture. Today’s under-30s are spending a smaller share of their income on food, alcohol and leisure than earlier cohorts did at the same age. Credit usage is lower, saving rates are higher and there is growing uptake in pensions and insurance products. This generation is behaving with caution and a long-term mindset.
Ruffer Investment Company Limited (LON:RICA) is a British investment company dedicated to investments in internationally listed or quoted equities or equity related securities
