Multi-Asset Insights
Key Highlights:
- Challenging market assumptions, we ask whether elevated interest rates have proven (that) detrimental to economic growth and take an open-minded look at the likely path of the global economy and the implications for investors
- The impact of climate change on financial outcomes is a key concern for long-term investors. We have conducted research to evaluate the potential impact for multi-asset investors via their main portfolio building blocks
What if ‘higher-for-longer’ rates were not (that) detrimental to GDP growth?
Elevated interest rates have been maintained across much of the globe for well over a year. While these were implemented to slow down economic activity, recent data suggests a nuanced reality. We take a thought-provoking stance to challenge prevailing market assumptions, considering a ‘higher-for-longer’ scenario outside of the narrow range of outcomes currently priced into markets. We examine the strategies benefiting from the market’s current narrow focus and how markets may be underestimating potential volatility and broader economic outcomes ahead that present risks but also opportunities for prepared investors.
The impact of climate change on long-term asset allocation
The impact of climate change on economies is a key concern for long-term investors. We examine climate change as a macro phenomenon by nature, expected to exert influence on multiple asset classes at a global level. Focusing on the relationship between asset prices and macro variables, such as GDP growth and inflation, we consider how climate change may affect those variables in the future. In this research, we have sought to quantify the potential impact for multi-asset investors via their main portfolio building blocks.