Our annual report based on a survey administered to our endowment clients summarizes returns, asset allocation, and other investment-related data for 307 institutions for the fiscal year ended June 30, 2021. We also review peer data on topics such as investment policy, portfolio manager structures, spending, and investment office staffing and governance.
Global equities tend to sell off following major geopolitical events, but such declines have historically been mild and short-lived, far below the 20% drawdown threshold that is typically considered a bear market.
No. The inflation attributed to green initiatives (known as “greenflation”) is part of the current inflation narrative, but we doubt concerns related to it will derail the global energy transition.
Central banks across the globe are poised to raise policy rates in response to inflation concerns. By examining how US policy rates have impacted US risk assets historically, we consider how assets may react today. These tighter financial conditions may cap the upside potential for risk assets. Within equities and credit, the risks are particularly pronounced in growth stocks and investment-grade corporate bonds.
Our annual survey-based report of 152 US colleges and universities includes commentary and analysis of investment performance, asset allocation, and related trends.
While bitcoin and gold share some qualities, these two assets are different and should not be viewed as interchangeable in investment portfolios.
Our annual analysis comparing private equity globally with public peers.
The global economy continued its road to recovery in 2021, as the most severe economic impacts of the COVID-19 pandemic gradually receded. There were fresh waves of infection during the year, but the public health actions taken to counter them were less economically damaging. In the meantime, fiscal and monetary policy remained at extremely accommodative levels, supporting strong risk-asset performance.
Even as broad equity indexes remain close to their all-time highs, the proportion of stocks in their own ‘bear market’ has recently increased, particularly among speculative growth stocks.
US consumer prices increased 7.0% year-over-year in December, which is the fastest annual rate since 1982, according to government data released today. We expect US inflation will moderate in the coming months, in line with consensus forecasts, but we anticipate it will settle in a higher range than the previous cycle.