Inflation has eased recently, but secular trends like surging debt levels, deglobalization, aging populations and supply-chain disruptions could keep it elevated in the longer run, along with rates. This scenario poses challenges for multi-asset-class investors.

Attendees at the MSCI Institutional Investor Forums in the U.S. and Canada agreed that the investment megatrends they see underscore the need to centralize risk in investment decision-making, making a total portfolio approach increasingly attractive.

The concept of tax alpha can help a wealth manager explain a client’s after-tax performance. In a new article in the Journal of Wealth Management, we propose two frameworks for the after-tax calculation used to measure tax alpha. 

We found a strong historical correlation between a company’s MSCI ESG Rating and its cost of capital in both equity and debt markets. Firms assessed as the most resilient to financially material sustainability-related risks financed themselves more cheaply. 

Global forecasters have recently suggested that the world economy is headed for a soft landing. Our latest market stress test looks at how this and other, less benign scenarios could affect a multi-asset-class portfolio in the coming months. 

Markets seem to be priced for a soft landing, in which inflation returns closer to target levels and recession is avoided. We also consider two potential downside-risk scenarios: a hard landing and a resurgence of inflation. 

How could higher global rates for longer than expected affect a global portfolio of equities, bonds and real estate? In our new quarterly series, Macro Scenarios in Focus, we consider four potential paths for the global economy and conduct a portfolio stress test.

Eclipsing equity and bond yields and high crowding may be signs of a vulnerable equity market. We compare equity/bond yield spreads in the major regional markets along with crowding in sectors and regions.