KKR has released its 2025 Global Macro Outlook by Henry McVey, CIO of KKR’s balance sheet and head of Global Macro and Asset Allocation (GMAA).
McVey and his team retain a “glass-half-full” mentality heading into 2025, though they believe the bar is now higher to achieve strong absolute returns. They also note that while investors should expect lower returns and more volatility, the combination of stronger U.S. productivity, favorable technicals, robust nominal earnings growth, and lack of net issuance elicit confidence that more gains lie ahead for investors in 2025.
Against this backdrop, McVey and his team suggest investors own more assets that are linked to nominal GDP, such as infrastructure, real estate and asset-based finance. They are also positive on investments linked to domestic consumption stories, control positions where operational improvements can drive robust growth, investments that stand to benefit from political changes and the private
