The third quarter has seen significant shifts in macroeconomic policy, driven by unexpected inflation data and central bank responses. As we move into the final quarter, understanding these regime changes is critical.
Our analysis indicates that traditional equity multiples may be overstating growth potential in sectors heavily reliant on cheap capital. By isolating the regime factor in our models, we have adjusted our sector weightings to favor resilient cash-flow generation over speculative growth.
Going forward, we anticipate continued volatility. Therefore, our portfolios are positioned dynamically, adjusting exposure based on real-time macro indicators rather than backward-looking quarterly reports.