Rising global bond yields
Equity Market Declines
Rising Inflation
1
RISING INFLATION FEARS
and increased macro uncertainty
2
RISING BOND YIELDS
rising rates are pushing bond prices down
3
EQUITY VOLATILITY
and increased concern about market sell-offs
LIQUID ALTS OFFER THE ABILITY TO ACT NOW
Source: FRED as of 30/11/2022; Core CPI (ex energy and food).
Source: Morningstar as of 31/12/2022 for MSCI World Index; noted declines are measured peak to trough based on month-end prices.
Source: FactSet; YTW as of 31/12/2022 for BBG Global Aggregate Bond Index
Economic uncertainty continues to dampen return potential and stoke volatility, leaving long-only strategies awaiting peak rates, confirmation of a “soft landing” and other evidence of a positive macro turning point to regain their traction. Potential for higher rates weighs on bond prices while an increasingly cloudy earnings outlook keeps equity markets unsteady.
Global macro investing eliminates the need to wait for sentiment to improve to be effective. Being able to take both long and short positions in uncorrelated return sources from a global menu of stocks, bonds and currencies equips a systematic macro approach to pursue growth and stability in virtually any environment.
2
RISING BOND YIELDS
rising rates are pushing bond prices down
3
EQUITY VOLATILITY
and increased concern about market sell-offs
Rising global bond yields
Source: FactSet; YTW as of 31/12/2022 for BBG Global Aggregate Bond Index
2
RISING BOND YIELDS
rising rates are pushing bond prices down
Equity Market Declines
Source: Morningstar as of 31/12/2022 for MSCI World Index; noted declines are measured peak to trough based on month-end prices.
3
EQUITY VOLATILITY
and increased concern about market sell-offs
Rising Inflation
1
RISING INFLATION FEARS
and increased macro uncertainty
Source: FRED as of 30/11/2022; Core CPI (ex energy and food).
Rising global bond yields
Source: FactSet; YTW as of 31/12/2022 for BBG Global Aggregate Bond Index
2
RISING BOND YIELDS
rising rates are pushing bond prices down
Equity Market Declines
Source: Morningstar as of 31/12/2022 for MSCI World Index; noted declines are measured peak to trough based on month-end prices.
3
EQUITY VOLATILITY
and increased concern about market sell-offs
Rising Inflation
1
RISING INFLATION FEARS
and increased macro uncertainty
Source: FRED as of 30/11/2022; Core CPI (ex energy and food).