Morgan Stanley IM: The R-Stars Align for Higher Dots – Allocating Global Assets Accordingly
Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer, Global Balanced Risk Control Team, shares his macro thematic views on key market drivers.12.09.2023 | 07:46 Uhr
- Stubbornly high inflation just keeps getting in the way. The r-stars and dots refer to the U.S. Fed, but the analogy includes the ECB and BOE as well.
- Decisions should have been obvious for global central banks by now – that both the level and growth rate of inflation would be low and slow enough for a pause - but this has just not been the case.
- Complexity is now added to the soft-landing playbook, in which the potential for slow economic growth would be followed by rate cuts designed to spur recovery. . .que sera, sera.
- But it just may not be that easy. And maybe that playbook is wrong.
- So, what does this mean for creating a global asset allocation? We discuss in this audiocast.
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