Industry Voice: Hard or soft landing? Macro adaptation in multi-asset

Industry Voice: Hard or soft landing? Macro adaptation in multi-asset

With growth overtaking rates as the dominant macro force driving market returns, how should multi-asset investors respond?

What does 2023 have in common with the Global Financial Crisis and recovery? Both feature a rotation in the macro force driving market returns: from real rates to growth.

From 2007-08, US monetary policy tightened until the subprime-mortgage meltdown. Similarly, last year's phenomenal Federal Reserve tightening caused a rates shock that drove returns. And today, as in 2009, recessionary indicators are flashing. For markets, determining the likely severity of the economic downturn has become the primary macro concern.

Lombard Odier Investment Managers multi-asset team describe how growth has taken the driving seat of market returns.

 

 

This post is funded by Lombard Odier Investment Managers

Advertisement

More on Investment

LPPI launches climate solutions-focussed fund

LPPI launches climate solutions-focussed fund

Environmental Opportunities Fund has initial £500m target commitment

Jasmine Urquhart
clock 01 April 2025 • 1 min read
LGPS and MP pension scheme back social infrastructure fund

LGPS and MP pension scheme back social infrastructure fund

First close of the NSIIF to provide £100m investment to be deployed into real estate

Martin Richmond
clock 31 March 2025 • 2 min read
Partner Insight: Robeco Active Quant - It's all about predictable results

Partner Insight: Robeco Active Quant - It's all about predictable results

Robeco
clock 31 March 2025 • 5 min read
Trustpilot