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Sign in Sign up for a FREE subscriptionKKR releases 2020 global macro outlook
KKR has released its 2020 Global Macro Outlook piece by Henry McVey, Head of Global Macro and Asset Allocation (GMAA). In “Play Your Game,” McVey outlined his team’s perspective on the current investing environment and reminds investors to play heavily to their own strengths in today’s markets.
“Despite a strong 2019, our macro models suggest that there is still an upward bias to risk assets in 2020, driven by accommodative central banks, low inflation and modest earnings growth,” said McVey. “However, cash flow, cash flow conversion, book value growth and return on capital will all matter much more to performance in 2020 than during the past few years.”
Specifically, McVey and his team note the following insights for investors to consider as they look ahead in 2020:
Global central banks’ decisions to hold nominal interest rates below nominal GDP at this point in the cycle means that almost all investors should overweight collateral-backe