The first and most significant theme is the normalization of the stock-bond correlation – which turned positive since the pandemic. This is particularly relevant for APAC investors in lower-yielding economies – who could enjoy higher income returns, on their global bond holdings, but also encounter greater volatility in their portfolios as the positive stock-bond correlation abates only slowly.
Capital market assumptions (CMAs) are crucial for guiding long-term investment strategies and help investors make informed decisions across various asset classes. These assumptions, built through several analytical frameworks, provide a structured approach to assess risk and return expectations across global investment markets.
The latest CMA Report by BNY Investment Institute which offers a comprehensive analysis of expected market trends and economic conditions over the next decade identifies five key themes for APAC investors to watch.
