{"id":515515,"date":"2021-07-21T07:03:26","date_gmt":"2021-07-21T11:03:26","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/kkr-releases-2021-mid-year-macro-outlook-report\/"},"modified":"2021-07-21T07:03:26","modified_gmt":"2021-07-21T11:03:26","slug":"kkr-releases-2021-mid-year-macro-outlook-report","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/kkr-releases-2021-mid-year-macro-outlook-report\/","title":{"rendered":"KKR Releases 2021 Mid-Year Macro Outlook Report"},"content":{"rendered":"

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KKR Releases 2021 Mid-Year Macro Outlook Report<\/b><\/p>\n

Henry McVey: The Macroeconomic Outlook Is Not the \u201cSame As It Ever Was\u201d<\/i><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nKKR today announced the release of its 2021 mid-year outlook piece by Henry McVey, CIO of KKR\u2019s Balance Sheet and Head of Global Macro and Asset Allocation. In his latest Insights piece, McVey delves into a key question on investors\u2019 minds: Will the post-pandemic economy be the same as it ever was?\n<\/p>\n

\u201cWhile we are optimistic about the future, we believe the \u2018once in a lifetime\u2019 event that defined 2020 indicates it is not the time to adopt a \u2018same as it ever was\u2019 mentality. We enter the second half of 2021 increasingly confident that the portfolio that drives excess returns in the next decade will look much different than the past. To us, this means opportunity to invest today in what we think is the portfolio of tomorrow,\u201d said Henry McVey.<\/i><\/p>\n

\nKey to McVey\u2019s thinking, as outlined in the report, is that policy shifts across the globe \u2013 particularly a reliance on more government support across a number of issues \u2013 have shifted the skew from disinflation towards reflation. Against this backdrop, McVey\u2019s message to investors is to get long pricing power and collateral-based cash flows.\n<\/p>\n

\nSpecifically, McVey and his team outline the following structural inputs that they believe will make this recovery much different than those experienced during the last four decades:\n<\/p>\n

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  1. \nThere is a more accommodative approach to monetary policy, including Average Inflation Targeting (AIT) in the United States.\n<\/li>\n
  2. \nAusterity is out and sustained global fiscal stimulus is in, with more of it going directly to consumers.\n<\/li>\n
  3. \nMore input cost pressures are being seen in already fragile supply chains, particularly as the Producer Price Index (PPI) rises above the Consumer Price Index (CPI). Labor shortages are also a part of this emerging conundrum.\n<\/li>\n
  4. \nLower real rates mean easier financial conditions for longer.\n<\/li>\n
  5. \nThe current global energy transition towards a cleaner environment is actually inflationary.\n<\/li>\n
  6. \nThere is now a record amount of savings to be spent earlier in the cycle.\n<\/li>\n<\/ol>\n

    \nLinks to access this report in full as well as an archive of Henry McVey’s previous publications follow:\n<\/p>\n