No. While the exciting developments in artificial intelligence (AI) have been a bright spot for equity markets this year, we do not think value will continue to lag growth. In fact, we expect it will outperform over the next several years.
For families of significant wealth, complexity is a natural byproduct of a well-managed portfolio, but there is such a thing as overcomplexity. This paper discusses a range of best practices to consider if and when a portfolio is encountering sluggishness, inefficiency, or ambiguity.
For investors that typically rely on high-quality government bonds as a counterbalance in equity-heavy portfolios, poor recent performance, higher cash yields, and uncertainty about inflation are difficult hurdles to overcome. However, they are not a reason to underweight government bonds. The outlook for government bonds is more constructive, and we expect them to outperform cash over the next one to three years.
The current macroeconomic and market environment creates an attractive opportunity for credit opportunity managers. We believe managers with flexible capital, strong sourcing efforts, and structuring skills will find ample investment opportunities and will deliver strong returns in the coming years.
The latest estimate of first quarter GDP indicates that the euro area fell into a technical recession.
No. Economic growth in China is likely to reach 5% this year, which is in line with government targets and consensus forecasts.
The 2022 Emerging Markets edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds.
US President Joe Biden and House Speaker Kevin McCarthy finalized an agreement in principle to suspend the US debt ceiling through January 1, 2025. The agreement removes the possibility of an unprecedented default, provided it is signed into law, however it still modestly reduces expected government spending and will likely result in tighter near-term liquidity conditions. Taken together, the compromise slightly increases the risk of recession in the United States, which we already viewed as likely.
Over the years, as institutional investors have implemented newer and more dynamic private markets strategies in their portfolios in an effort to boost investment returns, they have also faced a timing conundrum. Secondaries have the potential to help address this challenge. We review their potential advantages and show how they can be broadly used as an effective portfolio management tool for investors of all types and sizes.
The private equity secondary market can offer investors efficiency and access that is unavailable elsewhere in the private investment universe. We believe partnering with a knowledgeable and experienced investment team is an important part of finding success within this dynamic and evolving asset class, and we answer seven key questions reviewing private equity secondary funds and their benefits.