This co-hosted podcast episode focuses on macroeconomic analysis and its implications for investment strategies. The discussion begins with an overview of the challenging state of the German economy, attributing its decline to factors like energy dependence, Chinese competition, and demographic issues. The hosts then delve into broader market trends, including rising bond yields and the reassessment of recession risks, highlighting the potential for significant shifts in investor behavior and portfolio construction. Finally, they discuss several research papers, one offering a hypothetical 10-year investment outlook and another proposing a diversified portfolio incorporating liquid and illiquid alternatives, with a significant allocation (16%) to trend-following strategies. The episode concludes by emphasizing the need for investors to adapt to changing market dynamics and consider risk mitigation strategies beyond traditional asset classes.
