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Market take

Three 2023 investment lessons we carry into 2024

Jan 2, 2024
The podcast discusses three investment lessons from 2023, focusing on market reactions to data and central bank comments, the role of government bonds in portfolios, and the impact of mega forces like AI on market returns.
03:57

Podcast summary created with Snipd AI

Quick takeaways

  • Market volatility is likely to remain high due to macro uncertainty and unreliable guidance from central banks.
  • Government bonds may not provide the same level of risk mitigation as before, requiring a more granular approach to portfolio construction.

Deep dives

Market Reaction to Data and Central Banks

One of the main insights from this podcast episode is the observation of how market reactions to a single piece of data or a comment from central banks have been outsized in 2023. The speaker highlights that in an environment of high macro uncertainty and unreliable forward guidance from central banks, the volatility of interest rates is likely to remain elevated. This is due to the significant gap between what central banks indicate they will do and the current market pricing.

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