Robert Hoffman, Managing Director, Head of Investment Research, FS Investments, and Lara Rhame, Chief U.S. Economist, FS Investments, discuss their macroeconomic outloook for Q3 and beyond.
The current economic outlook is widely uncertain, largely in part to soaring inflation and question marks around the Fed’s next move. Because prices for household goods like food and energy have accelerated at a much higher rate than the core consumer price index (CPI) rate, the consequences of higher prices have hit individual households the hardest. Beyond volatile stock markets, individuals have been consuming less, and that decreased consumption has led to the deceleration of GDP.
It appears that this economic uncertainty may last for a while, and there’s an increasing probability of a recession in the future. Due to increasing correlation between traditional stocks and bonds, the 60/40 portfolio has posted some of its worst returns to date in 2022. Hoffman and Rhame discuss alternatives to the 60/40 portfolio and how these strategies are designed to hedge inflation, diversify, and generate alpha.
Hoffman and Rhame are heads of investment research and economics at FS Investments. FS investments is a leading asset manager that strives to provide access to alternative sources of income and growth. They have over 12 funds, including Interval, closed-end and mutual funds, BDCs, and credit REIT, and they oversee over $34 billion in assets under management.
For more insights on this topic, register & watch a replay of FS Capital’s Market Outlook iSummit presentation: Q3 Macro Outlook.
Hoffman and Rhame will discuss all of these themes and challenges at RIA Channel’s Midyear Outlook iSummit. The summit offers 1.5 CE credits and is complimentary for financial professionals.