Partners Capital Insights 2023 Executive Summary
A New Paradigm calls for a Return to Fundamentals
The coming decade will feature a paradigm shift to a more volatile inflation backdrop. This presents challenges for policymakers as they will struggle to thread the needle between managing inflation while delivering stable growth. Policy errors from both monetary and fiscal authorities will result in more frequent boom/bust cycles. This everchanging macroeconomic landscape will be in sharp contrast to the ‘Great Moderation’ experienced in previous decades. This context creates a more complex and riskier environment for investing that will need to be carefully navigated to deliver outperformance.