JULY 20238IN MY OPINIONALTERNATIVE ALLOCATION PERSPECTIVE Geopolitics, inflation, and Central Banks monetary policy have agitated financial markets in 2022, leaving returns and diversification in short supply. Over the last several decades, global equities and bonds have provided some level of diversification i.e. when equities have done poorly, bonds have often helped to compensate and vice versa. But the last twenty years were a period of low inflation, few geopolitical frictions , free trade and thus far, 2022 has been a rare exception, with both equities and bonds suffering drawdowns.Looking back prior to the financial markets history, the only calendar year we found with similarly steep declines in equities and bonds was 1974 (a year marked by an energy shock). While we do not know whether 2022 will end on a similar note, it seems clear that recent developments, from the end of central banks easy money policies to the beginning of a multi-year deglobalization trend, are likely to contribute to greater economic uncertainty and market volatility.By Filippo Casagrande, Head of Insurance Investment Solutions, Generali Asset & Wealth ManagementIn this new world, what does regime change mean for the investors? We believe alternative investments could play a vital role in improving portfolio resilience and returns and we want to focus on three topics we think alternatives allocators should consider:-Rising market dispersion Equity-leadership transition from growth to value- The need to break down silos in alternatives portfolios
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