Speed Kills

Speed Kills


Stefan Löwenthal

  • Managing Director, Chief Investment Officer — Global Multi Asset Team
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Jürgen Wurzer

  • Senior Vice President, Deputy Head of Portfolio Management— Global Multi Asset Team
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Igor Kovacic

  • Senior Investment Manager — Global Multi Asset Team
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With inflation running at multi-decade highs for several months, central banks might have to act much more forcefully to get inflation back under control. While a quick hiking cycle seems appropriate to reduce the excessive speed of the economy, the adjustment process is painful, and poses the risk of a more significant economic downturn. In its latest quarterly outlook, the Macquarie Global Multi Asset Team looks at possible trajectories for inflation, the reaction function of central banks, recession risks, and implications this might have on various asset classes.


The views expressed represent the investment team’s assessment of the market environment as of July 2022, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice.


Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

Diversification may not protect against market risk.

Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.

Equity securities are subject to price fluctuation and possible loss of principal.

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Portfolio’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Portfolio from executing advantageous investment decisions in a timely manner and could negatively impact the Portfolio’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Portfolio.