Bank: Next decade will require alpha engines amid persistent inflation volatility
Matt Bank · Matt Bank - "GEMs" of Risk, Asset Allocation, and Manager Selection (EP.419) · Nov 25, 2024 · at 24:34
Matt Bank, Deputy CIO at Global Endowment Management (GEM), outlines the emerging macroeconomic regime and implications for institutional asset allocation.
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“More inflation volatility likely. Higher interest rates for longer likely. U.S. Stocks have a huge valuation premium relative to the rest of the world. Maybe that persists, but maybe it doesn't. And maybe expected returns going forward are lower. And maybe you need an alpha engine in the future to make sure you can meet your nominal return goals. Our view is that quality of execution and the engagement that you can have with institutions to make sure a portfolio is optimized for their specific set of needs, those are going to be the touchstones for the next five to 10 years.”
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