The macro environment: Real assets in a new regime

The macro environment: Real assets in a new regime

Against a backdrop of high inflation, dramatically tightening financial conditions and slowing growth, Chief Investment Officer Jon Cheigh recently spoke with our Head of Multi-Asset Solutions, Head of Real Assets Multi-Strategy, and an Investment Director at University of Notre Dame about current market conditions.

Session

 
Download a summary >

Watch the session to learn about…

  • The roadmap for the next 12–18 months:
    We expect growth will remain below trend next year, and inflation may settle around 3% over a longer period. However, because the economy is decelerating, we expect volatility to remain high for the time being.
  • Regime change underway:
    Disinflation and low macro volatility drove markets for the last 20–30 years. We think the next 5–10 may be characterized by higher macro volatility and inflation, with real assets likely to outperform the broad market.
  • Building strategic allocations:
    A 10–15% allocation to real assets should be considered to maintain expected return and take advantage of the diversification benefits to improve overall portfolio volatility. Adjustments can be made from there to modulate a portfolio’s inflation beta, equity risk premium or duration risk premium exposures.

Panelists:

  • Vince Childers, CFA, Head of Real Assets Multi-Strategy
  • Jeff Palma, Head of Multi-Asset Solutions
  • Michael Cook, CFA, Investment Director, University of Notre Dame
  • Moderator: Jon Cheigh, Chief Investment Officer & Head of Global Real Estate

 

← Real assets and alternative income in a changing landscape overview

Recession or not, growth is slowing: Our macro team’s view
August 2022
Our base case calls for a shallow recession as inflation peaks and central bank policies take hold. Here’s how we’re positioned across key strategies.

Real assets: The benefits of the blend
June 2022
Investor approaches to employing real assets within their portfolio will vary.
Author Profile Picture

Michelle Butler

Interested in learning more?

Explore our comprehensive range of investment strategies and solutions shaped to address the challenges of today, tomorrow and beyond.