OEF - Navigating A Trilemma

2023-04-23 07:41:00 ET

Summary

• The sudden collapse of two US regional banks and the forced acquisition of Credit Suisse in Europe introduced a third dimension to the existing policy dilemma of balancing inflation and growth objectives: financial stability.
• In the weeks since banking system stress began, developed market central banks have continued their fight against inflation while acknowledging economic stability risks.
• Throughout the policy tightening cycle, the strength of consumers has helped to keep a growth downturn at bay, despite looming fears of recession.
• In our view, uncovering alpha opportunities in today’s challenging environment requires a data-centric, systematic investment approach - allowing us to remain nimble as investors during a time where dynamism matters most.

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