Deciphering the Implications of a Rocky Net Zero Pathway on Long-Term Investments

Also Interesting

• Lifecycle investing: From theory to practice
• Keep Calm and Carry On
• Multi-Asset Solutions Weekly Strategy Report

Capital Market Assumptions March 2023

The annual edition of Capital Market Assumptions takes a more in-depth approach this year by considering the impact of climate change and social considerations on economic variables and asset class behaviors. The need to balance climate transition with the social dimension, the inclusion of additional asset classes, enhancement of real assets modeling, and detailed analysis of strategic asset allocation implications are among the improvements introduced in this year's edition.

Disruptive Trends and Their Long-Term Impact

The war in Ukraine and its implications for the net zero path, coupled with persistent inflation due to COVID-induced supply bottlenecks, have created disruptive trends that impact long-term asset class forecasts and strategic allocation. These disruptions, including diverging policies towards a "rocky net zero path", higher inflation, and the need for central banks to balance their roles, underline the importance of limiting the social costs of the transition.

Dive into the comprehensive analysis of these critical considerations and their long-term implications. Click "Read report" to access our detailed findings and insights.