This issue of the publication looks at whether bond and equity markets are still in sync when it comes to pricing the current macroeconomic environment. As bond yields and stock prices have risen in unison for much of the first half of this year, our economists ask whether this development demands any changes in terms of how investors should best position their portfolios going forward.

In addition, our economists turn the spotlight on “scarcities” ‒ a topic that has been top of mind lately, especially as bottlenecks emerge in connection with the buildout push for data centers. For long-term investors, however, it may make sense to focus on structural rather than cyclical scarcities. In our view, it is also important to consider investing broadly in the theme and in solution providers that seek to alleviate scarcity, rather than in scarce resources themselves.

Finally, our “Principal Insight” focuses on increasingly scarce manager alpha and examines how LGT Capital Partners seeks to access and implement differentiated and largely uncorrelated sources of alpha for the public equities allocation of the LGT Endowment.