Managing Money in the New Investment Paradigm
July 7, 2024
Co-CIO Karen Karniol-Tambour recently joined Alex Shahidi, managing partner and co-CIO of Bridgewater client Evoke Advisors, on the latest episode of his podcast, The Insightful Investor. They discuss Karen’s professional journey, the new paradigm of elevated inflation, higher rates, AI breakthroughs, and increased geopolitical competition—and how to think about building great portfolios in this environment.
As Karen describes, the environment today is very different than what we saw over the past decade-plus. Inflation and interest rates are much more important considerations for investors, artificial intelligence has the potential to transform the economic backdrop, and geopolitical competition is intensifying with major implications for government spending and borrowing.
How can investors adjust to these changes? Karen and Alex discuss some key considerations, including the risk of assuming that the future will be a repeat of the last decade (which was a historically good one for assets), how to think about benchmarking performance in a way that aligns with investment goals, and practical steps investors can take to increase portfolio resiliency. They also speak to the importance of good governance and long-term thinking to successfully navigate an increasingly uncertain world.
As Karen describes, the environment today is very different than what we saw over the past decade-plus. Inflation and interest rates are much more important considerations for investors, artificial intelligence has the potential to transform the economic backdrop, and geopolitical competition is intensifying with major implications for government spending and borrowing.
How can investors adjust to these changes? Karen and Alex discuss some key considerations, including the risk of assuming that the future will be a repeat of the last decade (which was a historically good one for assets), how to think about benchmarking performance in a way that aligns with investment goals, and practical steps investors can take to increase portfolio resiliency. They also speak to the importance of good governance and long-term thinking to successfully navigate an increasingly uncertain world.