In 2020, ours was the last major event held before the pandemic shut down the country and the world.In 2023, the Summit was held days before the collapse of Silicon Valley Bank sent shockwaves through global financial markets.global chief investment strategist for financial giant BlackRock
“It didn’t really matter if you had a 60/40 portfolio or a 40/60 portfolio. As long as you were invested, you were able to really benefit from this Goldilocks environment,” she says.But now we are in what BlackRock calls the New Regime, where central banks are going to find it much harder to set interest rates and get the balance between inflation and growth right.
These challenges increase volatility, and make the job of central banks balancing inflation and growth much more tricky. For governments too; Treasurer Jim ChalmersWhile we are all celebrating the record highs on equity markets, Li points out the effects of this New Regime are already obvious. The dispersion of stock returns is currently 20 per cent more dispersed than in the period after the GFC, and analysts’ earnings forecasts are 50 per cent more dispersed.