HYLB - Mid-Cycle Investing: Growth-Oriented And Selective

• We’ve moved past the early-cycle environment that predominated risk taking in 2020, post the pandemic lows, and we’re moving really into a mid-cycle environment, which tends to be constructive for risk.
• This mid-cycle environment is still going to be expansionary, albeit with slightly lower growth than we’ve seen predominate over the last year or so, but a very constructive environment for risk taking more broadly.
• In these conditions, equities tend to be, on a risk-adjusted basis, the best asset class in terms of performance, and tend to outperform both bonds as well as credit.
• Of late, one factor has gained incredible traction, and that has to do with ESG consideration.

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