Top of Mind: Time for a New Playbook on Inflation and Active Management?
Multi-Asset Strategist Adam Berger considers the outlook for inflation, the changing environment for active management, and potential portfolio next steps.
Investors continue to feel their way through an economic and market environment in which history offers limited guidance. In this note, I update my thinking about the pandemic and how investors should respond. Then I dive into two big questions that have come up in the wake of COVID-19: Are we heading for future inflation, and do we need to rethink active management? On inflation, I describe what has changed since the pandemic began, offer my assessment of the likely outcomes, and provide a road map for thinking about a portfolio response. On active management, I address the performance of defensive equity strategies and value stocks, the dominance of technology, and the backdrop for private assets and hedge funds.