Managing Disruptions: Key Insights from Capital Market Assumption

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Capital Market Assumptions March 2023

The text revolves around the exploration of asset allocation strategies against the backdrop of climate, social and geopolitical disruptions. The author highlights the consequences of the Ukraine conflict on the global energy supply and inflation, exacerbated by persistent supply bottlenecks induced by Covid-19. This context has underscored the urgency of transitioning to greener energy sources, even though this shift has been rather uncoordinated at a global level.

A Glimpse at the Ten Key Takeaways

Delving into specific strategies, the author presents ten key takeaways from the annual capital market assumptions update, foreseeing a rocky net zero path and higher short-term inflation. Central banks are predicted to strike a balance between financing green investments and controlling inflation. Additionally, the text underscores the social costs of transition, a probable rebalancing of profits towards labor, the relevance of bonds and the prospect of lower equity returns compared to the past decade. The need for portfolio diversification with a strong focus on real and alternative assets is also emphasized.

To delve deeper into these critical insights and understand how they could shape your investment strategy, do not hesitate to click "Read report".