There is always uncertainty in markets, and there will always be difficult asset allocation decisions that investors must make. However, process-driven macro strategies should be able to lean into this uncertainty to generate positive performance in any market environment.
Summary Points:
There is always uncertainty in markets, and there will always be difficult asset allocation decisions that investors must make.
Process-driven macro strategies should be able to lean into this uncertainty to generate positive performance in various market environments.
In 2024, we expect a lot of policy decision and political upheaval– which will drive macroeconomics and price action.
We expect volatility in the corporate debt space. If policy becomes more restrictive, we see which companies are exposed.
We believe all this uncertainty creates ‘capturable volatility’ opportunities for alpha due to heightened volatility in credit markets.
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