More selectivity in a late-stage environment.
Our main conclusion from the conference was that investors around the world are increasingly interested in uncorrelated and more liquid alternative strategies.
Asset allocators show a growing but more selective interest within fixed income strategies with focus on structured opportunities with shorter duration and floatingbased assets. The general sentiment around the health of the economy and the cycle was modestly positive.
Inflation is always and everywhere a monetary phenomenon. Although we at Kieger are by no means committed monetarists, this chart lends more credence to the idea that inflation will be moving lower in the next months.
The huge withdrawal of central bank liquidity happening currently is truly “unprecedented” (an otherwise-overused term currently). Despite all of the detailed analysis on the effects of quantitative tightening no one can predict the full impact this will have, but it is certainly not Fed Chair Yellen’s 2017 expectation of “watching paint dry”.
Inflation continues to drive recession worries. US inflation continues to drive recession worries with CPI running at 8.6% YoY in May.