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The Great Rotation - From Crowded Trades to Real Assets

From Crowded Trades to Real Assets - A Shifting Market Regime

After more than a decade dominated by low inflation, ultra-loose monetary policy, and relentless flows into mega-cap technology and popular growth names, the market is beginning a profound shift. Investors are beginning to question whether crowded, expensive trades can continue to deliver returns in an environment of stubborn inflation, slower growth, and rising geopolitical risk.
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Dynamic Asset: The Right Approach for the Times

From the Great Moderation to the Great Rotation

For the past 30–40 years, investors have enjoy ed what in hindsight was an unusually favourable environment for asset prices and index investing. After the stagflation of the 1970s, inflation steadily subsided, interest rates trended down for decades, and globalisation expanded efficiency, trade, and profitability. This backdrop supercharged both equities and bonds and gave rise to the dominance of static Strategic Asset Allocation (SAA) and passive index investing.
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Why it's time for advisers to drop the 60/40 asset allocation

Structural changes in global investment markets are casting doubt on the revered 60/40 asset allocation traditionally utilised by financial advisors. Rather than boosting returns and protecting investors during downturns, it could fail to deliver an adequate mix of protection and returns. 

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