Secularly, we are in a new paradigm, with echoes of the past. Inflation, interest rates, fiscal policy and geopolitics matter more than they have in decades, and combined with new disruptive technologies, are likely to shape macro conditions and market outcomes. Traditional portfolios are vulnerable in this environment, and the need for portfolio resiliency is as great as ever. Cyclically, policymakers are currently testing the limits, though with significant divergences in conditions globally, policy will likely be deployed to different degrees. This creates an environment of directional and differential macro volatility.
