An economist at UBS' $2.9 trillion wealth management arm says investors will need to adjust to these 3 new realities in the post-coronavirus world

• After the coronavirus pandemic, investors will have to adjust to a world with more debt, a world that's less global and more digital, according to Dean Turner, an economist at UBS' $2.9 trillion wealth management arm.
• All economies will exit the crisis with much higher levels of debt than when they entered it, Turner said, adding that this figure could easily be 10-15 percentage points higher as a share of debt to GDP.
• In his view, investors should brace for a period of financial repression and higher taxation since personal income and wealth taxes could face higher scrutiny in future.
• Turner believes that the current trends, seen as a result of the Covid-19 result, may not unwind and are here to stay.
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An economist at UBS' $2.9 trillion wealth management arm warned Monday that investors will be forced to adapt to a new economic world order once the coronavirus pandemic has passed.

Investors will have to brace for the release of a "disastrous" set of economics numbers in the second quarter, he said during a press briefing attended by Markets Insider Monday.

Turner advised on looking towards the longer-term rather than medium-term and said post coronavirus, economies will have an environment of a world with more debt, a world that's less global and more digital. He touched upon each idea as follows:

A world with more debt

Dean Turner said that in a short span of time, governments will make use of "every measure" they have available to boost the economy by spending more.

All economies, he said, will exit the crisis with much higher levels of debt than when they entered it: easily up to 10-15 percentage points higher as a share of debt to gross domestic product, depending on which economies are looked at.

Turner said that as economies transition to a world with higher debt, investors should be wary of two potential trends:

1. A period of financial repression is likely. This will be one of the key ways in which governments can press down on the level of outstanding debt in economies.
2. Higher taxation. Turner said this has "arguably" been on the cards for a while, even pre-crisis. An emphasis on corporations and the digital economy could sharply come into focus. Personal income taxes and wealth taxes could gain more scrutiny in future.

Read more: 'The great meltdown': A prominent bear says investors are dismissing a rare drop in consumer prices — and warns it could be more damaging to markets than the pending recession

A world that's less global and more digital

Turner believes deglobalization has been underway for some time already. He spoke of last year's trade war between the US and China and identified it as a trend, accelerated by Covid-19, that is likely to pan out in the next decade.

A world that is less global, Turner said, would be subject to more populist and protectionist politics.

On a more positive note, he said an upside would be increased localisation of production that can lead to significant areas of investment as supply chains shift and are shortened around the world.

He predicted that investment in automation and robotics is likely to increase. Coronavirus, he stressed, in UBS' view, is an acceleration to a trend that was already underway.

Turner is of the opinion that the corporate trends seen as a result of the Covid19 crisis may not unwind. Working from home and greater investment in technology could be accelerated further, he said.

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