In July, we observed that tailwinds from ever-lower policy rates and lower valuations are behind us. We highlighted the importance of robust portfolio construction and suggested investors could improve outcomes by being tactical and incorporating alternative sources of return and alpha. This post offers a brief update to these views.
A fourth member, the People’s Bank of China (PBOC), has joined the Major Central Bank Club and continues to shake things up.
The People’s Bank of China’s policy moves in the coming weeks and months could have large implications for the monetary policies of other major central banks and have a profound impact on asset prices globally.
In January, we suggested that investors will be well-served by an emphasis on robust portfolio construction through targeted diversification and a focus on exploiting relative value opportunities, declaring that the days of bold beta bets are over. This post offers a brief update to these views.