Global macro strategies: Multi-dimensional tools for an era of economic change

The impact of macroeconomic conditions on financial markets is not static — it evolves with time. In recent years, we’ve witnessed a regime change, with macro factors influencing investor sentiment to a degree not seen in the past two decades. This might present challenges for asset allocators, as the process of constructing robust portfolios becomes more complex when faced with rising inflation, shifting monetary and fiscal policy, looming recession fears, political divisions, and global tensions. However, it is precisely in such a volatile environment that global macro strategies may find their greatest opportunities to shine.

In this article, we consider the heterogeneity of the global macro strategy universe, the case for combining different styles, and the choice between a single- and a multi-manager approach. We also explore the critical strategic role global macro strategies may play in a diversified investment portfolio, a consideration that may be particularly pertinent in today’s financial climate.