敏捷時代：2024年投資主題和機遇報告+An+Age+of+Agility：Themes+and+Opportunities+2024

ThemesandOpportunities2024

Anageofagility

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

Theimageonthefrontcovertakesinspirationfrom natureandtheorganic world—fromdiversity anddisorderandthefundamentalmathematical rulestowhichweoweour existence.Thegraphics havebeengeneratedbyassigningnumericalvalues tosingle-lineshapestocreateamotif.Theresult isstructured,deriving orderfromchaosand formthroughchange—a metaphorforthecontentyouareabouttoread.

Summary

Wecontinuetoseeupheavalacrossglobalmarkets,economiesand

societyreshapingtheworldinwhichwelive.Specifically,wenotea

normalizingofmonetarypolicy,

escalatingconflictrisk,adisorganizedtransitiontocleanertechnologiesandindustrialprocesses,andthe

lightning-quicksocializationof

generativeAI.(Notethatthispieceisstillwrittenbyhumans!)

InourlastannualThemesand

Opportunitiespaper,

DéjàNew,

weidentifiedthatsomeofthe

experiencesandchallenges

wefacedwerecomparableto

thoseofthe1970s,aperiod

alsocharacterizedbyinflation

volatility,conflictandsustainabilityissues.Weidentifiedlessons

fromthatperiodthatinvestors

coulddrawfromtoenhance

theirdecision-makingandguidefuturepositioningtomeettheirlong-termobjectives.

Thepast12monthshavefurtherunderlinedsomeofthefragilitiesintheglobaleconomyandhave

accentuatedotherthemes(forexample,natureandartificial

intelligence).Investorsarerapidlywakinguptoopportunities

presentedbyrisinginterestratesandnaturerisksaswellasotheremergingthemes.Opportunitiescanevaporatequicklyinthesefast-movingandhyperaware

times,andinvestorswillneedtobeflexibleintheirapproachestocapitalizeonthese.Weare

nowinanagewhereagility

mustbethefoundationforhow

investorstakeandmakedecisions.

Insuchanenvironment,

understandingthekeytrendsthatwilldrivemarketsiscrucial.Webelievethisisbestdonebyapplyingaseriesofframeworkstothemarketlandscapethatofferinvestorsastructurefor

shapingtheirdecision-making.Inthefollowingpages,we

identifywhattheseframeworksshouldbeandhow,through

theseparadigms,investors

shouldassessopportunitiesandpitfallsin2024andbeyond.

ThemesandOpportunities2024:Anageofagility1

Summary

Contents

Introduction

Supercycles

Authors

Megatrends

Regimechange

Contents

Introduction

3

Regimechange

6

Supercycles

12

Megatrends

20

ThemesandOpportunities2024:Anageofagility2

Supercycles

Introduction

Authors

Megatrends

Contents

Summary

Regimechange

Successtodayrequires

theagility

anddriveto

constantly

rethink,

reinvigorate,reactand

reinvent.

BillGates

Introduction

Theworldtodaylooksverydifferentfromtheworldweexperienced

adecadeago.Inflation.Interest

rates.Geopoliticalrisk.Technology.Resources.Climate.Nature.Ineach

oftheseareas,theoutlookhas

changedsignificantly.Weare

operatinginanentirelynewregime.

Thecurrentenvironmentisso

different,inpart,duetotheshort,sharpshockstothesystemearlierthisdecade—pandemic,warsandpolicymakerresponses.Althoughshocksdonotnecessarilytrigger

regimechange—theenvironmentcansimplyrevertto“normal”afteratime—theseshockswereofsuchmagnitudethatsomeelementof

regimechangewaslikely.However,whathasassuredapermanent

changeintheoperatingenvironmentishowtheseshockscombinedwithslower-movingforces.

Thedebtboomhasbeendecades

inthemaking.Theclimate

transitionefforthasbeenplayingaslowcatch-uptoclimatechangeforwelloveradecadebuthasrecentlygainedmomentum.AndUS–Chinarelationshavebeendeterioratingformanyyears.Withunderlying

forceslikethisinplay,ashockcanservetoreleasebuilt-uppressure,offerawake-upcallforbetter

managementoflong-termrisksorserveasaninjectionofadrenalinintotheheartofinnovation.The

currentenvironmentfeaturesall

these.Thisisanewworld.Ahighlycomplexanddynamicworld.

Investorsneedtodemonstrate

clarityandagility.Tomakesenseofthisenvironment,wecategorizeourthemesasfollows:regime

change—one-off,indefinitelypersistingparadigmshiftsin

conditions;supercycles—

conditionsexpectedtooutlast

multiplemarketcycles;and

megatrends—multidecade

transitionsthataregraduallybutsteadilymaterializing.Weoutlineourviewsbelow.

Regimechange:

?Heightenedgeopoliticalrisk,

inflationvolatilityandtransitionrisksallpointtogreatermarketinstability,dispersionand

dislocation,conditionsthatare

ripefordynamicalphagenerators,suchashedgefunds,andstrategiesthatcanstepintospacesthat

traditionallendershaveleft,

suchasprivatedebt.Coupledwithhigherrates,hedgefundslookpoisedforstrongerreturnsthisdecade,welcomenewstoanindustrythatstruggledto

competeintheone-directional,liquidity-fueledequitymarketsofthepastdecade.

?SharplyweakeningsentimentrelatedtoChinahascontrastedstarklywithUSmarketstrength

ThemesandOpportunities2024:Anageofagility3

Supercycles

Introduction

Authors

Megatrends

Contents

Summary

Regimechange

inrecentperiods.Wecontinuetorecommendthatinvestors

baseallocationstoChinaand

emergingmarkets(EM)atleastatbenchmarkweights,and,indeed,thenegativesentimentmay

presentacontrarianopportunity,totheextentthatrisksarepricedin(atthetimeofwriting).

?Althoughratesmayhavepeaked,theyseemunlikelytorevertall

thewaybacktotheverylowratesofthe2010s.Thisshiftmeansthe

valueoffixedincomeinmulti-

assetportfolioconstructionis

clearlygreatertoday.Investors

withinfrequent,periodicstrategicassetallocationreviewswouldbe

wisetoacceleratethenextreview.Itwouldnotbesowise,however,toassumethatthedefensiveroleoffixedincomewillbeasstrong

asinthepastdecade—thereis

noguaranteewewillautomaticallyreturntoaperiodofnegative

correlationsbetweenequityandbonds.Weareconcernedthat

inflationwillbevolatile,and,insuchcircumstances,equitybondcorrelationsareoftenpositive(forexample,the1970sto1990s).

Supercycles:

?Althoughinterestrateincreasesarehavinganimpact,andcyclicalinflationarypressuresare

subsiding,manysignificant

structuralinflationarypressuresremain.Increasingprotectionism,supplychainpressureandthe

needsofthelong-termenergytransitionallskewinflationriskstotheupside.Furthermore,thepandemic-relatedcoordinationoffiscalandmonetaryefforts

couldnowdevolveintoatension

betweenamorerestrictive

monetarystanceandcontinued

accommodativefiscalsupport

fromgovernmentseagertofundtransitionand/orwinvotes.

?Ontheservicessideofthe

equation,thegreatestdeflationaryforceislikelytobeAI.Arguably,

2023wastheyearAIcameof

age,withstocksdeemedAI

enablerscompletelydominatingglobalequitymarketreturns.

Thedynamicbetweeninflationanddeflationherecouldresult

inapatternofnear-orat-targetinflationforatime,punctuatedbyshocksthatresultinslightlyhigherlong-termaveragelevels.

?Higherratestodayareonce

againhighlightingthefragilityofheavilyindebtedplayersin

themarket.Ithasshiftedpowerfromborrowerstolenders.In

ourview,privatedebtisvery

attractiveinthisenvironment,providingmuch-neededliquidityandofferinginvestorsstrong

risk-adjustedreturns.

Megatrends:

?Thedisruptioninenergy

supplyclearlyhighlightedthe

needforenergysecurity,not

justofshort-termoilandgas

supplies,butalsoofhomegrownrenewableenergyforthelongterm.Innovationwillbekeyindeliveringonthenextwaveofthetransition:thehard-to-abatesectorsofheavyindustry—

steel,cement,chemicals—andheavytransport—trucking,

shipping,aviation.

?Theroleofcriticalminerals,

essentialcomponentsofthe

transportandinfrastructure

buildneededtopowerthegreatelectrification,ismorewidely

recognizedtodayandfeaturesinrecentprotectionistpolicies.

ThemesandOpportunities2024:Anageofagility4

Supercycles

Introduction

Authors

Megatrends

Contents

Summary

Regimechange

Atthetimeofwriting,however,marketpricingdoesnotfully

accountfortheanticipated

demand.Activemanagementis

essentialtoisolatethethematic

(electrification)asopposedto

thesector(mining)asstepchangesininnovationandregulation

willhaveasignificantimpactondemandstructuresovertime.

?Statisticsonspecieslossare

staggering,1andglobal

governmentsaresignaling

regulationonnature-relatedissuessuchasdeforestationandwater

useandquality.TheTaskforce

onNature-RelatedFinancial

Disclosures(TNFD)guidancewasissuedinSeptember,andinvestorsneedtobereadyforforthcomingregulation.Agricultureis

responsibleforaquarterof

globalemissionsandformass

deforestationandneedsto

transitiontoamoresustainablefooting.Opportunitiesexist

forinvestorsinstrategiessuchasregenerativeagriculture

andagritech.

Wediscusseachofthesethemes

inthesectionsthatfollow.As

notedabove,thesearenot

mutuallyexclusive.Thereis

clearinteractionbetweenthem,

andinthecontextofturning

“themes”into“opportunities,”

manyofthestrategiesweidentifyarepositionedtocapitalizeon

orprovideprotectionagainst

morethanonetheme,thus

givingusgreaterconfidence

intheircapacitytoimprove

portfoliooutcomes.

ThemesandOpportunities2024:Anageofagility5

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

Regime

change

Dispersionanddislocation

Atthehalfwaypointof2023,theS&P500hadrisennearly16%,

surpassingfull-yeargainsmadein2010,2011,2014,2015and2016—insomecases,byasignificant

margin.2This,however,hascomewithasizeablecaveatintheformofextrememarketconcentration

focusedonthetechnologysector,withtheso-called“Magnificent

Seven”technologystocks—Apple,Alphabet,Meta,Amazon,Microsoft,NvidiaandTesla—accounting

fortwo-thirdsofthemarketgainduringthefirsthalfof2023.

Althoughsomeformsofactive

equitymanagementhavethereforebeenbinary(forexample,aquestionofunderweightingoroverweightingtechnology),thisdoesmaskarisingopportunityinactivemanagementinmanyotherareasaswellasthe

potentialforalphafrombroad-basedstrategiesresultingfromanymeanreversioninthepricingofthose

technologyvaluations.

Inrecentyears,elevatedgeopoliticaltensionshavebeenamajordriverofvolatility.USandChinarelationsareclearlystrainedandtheiractionsincreasinglyprotectionist.The

escalationofconflictinUkraineismovingintoitsthirdyear,andthesadturnofeventsinIsraelhas

beenamajorsetbackintheMiddleEastfollowingtherapprochementbetweenSaudiArabiaandIran

earlierintheyear.ThepossibilityofconflictintheTaiwanStraitalsoremainsageopoliticalwildcard.Investorsneedtobeawareof

elevatedrisksthatareunlikely

togoawayintheincreasingly

factionalizedworld.

Wedonotrecommendmaking

changestostrategicallocationsinresponsetounfoldinggeopoliticalevents.Instead,investorsshould

maintainbroadglobaldiversification,builddownsideprotectionand

incorporaterisk-mitigationstrategiesthatextendbeyondbonds.The

uncertaintycanbeanopportunity,however.Wherethereisdivergenceandrisk,thereisdispersionand

dislocation,andagilemanagers

ofopportunisticmandatescan

capitalizeonthese.

Hedgefunds

Hedgefundshavebeenoutof

favoramonginvestorsforsometimewithnetfundoutflowsanda

reductioninnumberofmanagerscharacterizingthespacesince2016.

Hedgefundsasawholehave

struggledtostandoutfromthe

crowdsince2008,asglobalcentralbankpolicyactedtosupport

markets.Thenetresultofaglobal

ThemesandOpportunities2024:Anageofagility6

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

Percentageofindexineachbucket

andcoordinatedefforttostaveoffabroaderglobalrecessionwasanextendedperiodoflowinterest

rates,lowvolatility,lowdispersionandabeta-drivenbullmarketof

historicproportions,asinvestorshadtochaseriskforreturn;

andwithcashat0%,collateral

returnsinhedgefundportfolioswereminimal.

Atthesametime,thelowvolatilityandlackofdispersionlimitedthehedgefundopportunityset.Therehasbeenaresoundingreversalinthesedynamics,resultinginarichopportunitysetforhedgefundsmovingforward.

Opportunisticcredit

Asanexample,currentspreaddispersionwithincreditmarkets

isatnotablyhighlevelsassome

issueshavefaredbetterthroughthe

COVID-19periodandrisinginterest

ratesthanothers.(SeeFigure1.)

Thispresentstacticalopportunities

instressedliquidcreditandfallen

angelsaswellasfinancingand

restructuringopportunitiesoverthe

mediumterm.Investorscanexploit

theseopportunitiesviaflexible

creditmandates,includingcredit

opportunitiesfunds,bidirectional

creditfundsandopportunistic

multi-assetcreditmandates.

Privatemarkets

Aslowdowninprivatemarket

activitymayleadtoanopportunity

forlimitedpartners(LPs)toaccess

well-respectedbutpreviously

unavailablegeneralpartners(GPs).

AsGPsreturntothemarkettoraise

Figure1

GlobalHighYieldIndexbrokendownintoOASbuckets

27.1

21.7

16.8

13.8

7.9

7.8

4.8

<200200–300300–400400–500500–600600–700>700

Basispoints(bps)

Source:BloombergandMANGroup.ICEBofAGlobalHighYieldIndex.DataasatSeptember30,2023.

OASmeasurestheimpliedyieldpremiumabovearisk-freereferenceratethataninvestorrequirestopurchasethebond.Higher

OASisthereforeusuallyanindicationthatthemarketviewsthebondasriskier.

1basispointis1hundredthofapercentage.

ThemesandOpportunities2024:Anageofagility7

theirnextfunds,someLPsmaybereticenttoallocateadditionalcapitalduetoeconomicuncertainties.Thismayprovidetheopportunityfor

moreaggressiveLPstoobtainaccessthattheycouldnototherwiseget.Notably,thedispersioninreturnsbetweenmanagersinprivate

marketsascomparedtopublic

marketsunderscorestheimportanceofgainingandmaintaining

accesstohigh-qualitymanagers.(SeeFigure2.)

Althoughhighdispersionin

privatemarketshasalwaysbeencharacteristicoftheassetclass,variousfactors,suchasincreasedinterestrates,improveddata,

regulatorychanges,andmarketconditionsorregimeshifthave

broughtdispersiontotheforefront

ofinvestmentdiscussions.

Understandingtheimplications

ofmanagingdispersioniscrucial

forinvestorsseekingtomake

informedinvestmentdecisionsand

tomaximizereturnswhilemanaging

riskeffectively.

Secondaries

Inprivatemarkets,secondary

fundscanofferavaluabletoolfor

investorsbyprovidingafoundation

forimplementingvariousprivate

marketstrategies.Forexample,

secondariescanbeanimportant

meanstoaccessprivatemarkets

duringtimesofhighermarket

dispersionwhendislocationsmay

presentattractiveopportunities,

includingcontrarianinvestingwith

Figure2

Dispersioninprivateversuspublicmarkets

40%

30%

20%

10%

0%

-10%

-20%

Publicmarkets

Privatemarkets

Private

equity

Venture

capital

Real

estate

Real

assets

Debt

Fundof

funds

Secondaries

Global

equity

Small

cap

Natural

resources

Infrastructure

REITs

Top/bottomquartilerangeTop/bottomdecileMedianIRR

Source:PitchBookandMerceranalysis.DataasofMarch31,2023.Dispersionofreturnscalculatedusinga23-yearlookbackperiodexceptfornaturalresources(10-year),infrastructure(10-year)andREITs(18-year).

ThemesandOpportunities2024:Anageofagility8

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

thepotentialtogeneratehigherrisk-adjustedreturns.

Intoday’smarket,thereisLP-ledinterestinwell-regardedfundsavailableatattractivediscounts.

Historically,secondarieswere

viewednegativelybyGPsthatsawthemasavoteof“noconfidence”byLPs.Overtheyears,secondarieshaveevolvedintoaportfolio

managementtoolthatallows

LPstoreducethenumberof

reportinglines,therebycreating

thepossibilityofallocatingtonewinvestments.Further,thesecondarymarketopportunitysethasbeen

steadilydeepeninginconjunctionwiththeoverallincreasing

appetiteforprivatemarkets,thesophisticationofinvestorsandthegrowingdemandforliquidity.

Therelativelyrecentdevelopmentof“continuation”or“GP-led”

secondaryfundsgivessecondaryinvestorsaccesstoseasoned,

successfulprivatecompanies

(trophyassets)withcompelling

growthprospectsthatwere

previouslyunavailabletothem.

Inthesevehicles,GPsrollover

theirinvestmentsinaverylimitednumberofportfoliocompanies

(often,onlyone)intoanewfund.IfexistingLPschoosenottoexercisetheliquidityoptionofferedaspartofthetransaction,newLPsmay

participate.Thisgivessecondary

investorstheabilitytogainexposuretothemostdesirableprivateassets,manyofwhicharemanagedby

highlyregardedGPs.Asopposedtothe“blindpool”riskassociatedwithprimaryfundcommitments,theseGP-ledvehiclesgiveLPsfullknowledgeoftheirexposures,

withinvestmentsincompaniestheyarefamiliarwithandwhose

risksandgrowthpotentialthey

understand.Asalways,timewill

tell,butduetotheforeknowledge

oftheassets,weexpectlossratios

tobesignificantlyloweronGP-led

opportunities.Anotherbenefitis

thatfeestendtobelowerinthese

typesofvehicles.Duetothese

attributes,GP-ledvehicleshave

rapidlygainedpopularityandnow

representapproximately50%of

secondary-markettransactions.

WhentheIPOmarketopens,it

willlikelybebecausethepublic

equitymarkethasbeenperforming

well,whichcancreateanatural

exitrouteforsecondariesatmore

robustvaluations.3

Usually,anactiveIPOmarketalso

leadstoacompetitivemarketfor

mergersandacquisitions(M&As),

whichcanprovideanattractiveexit

alternative.InthecaseofGP-led

transactions,thecompaniesare

selectedfortheirgrowthpotential,

whichprovidesGPswiththe

optionofcontinuingtogrowtheir

companiesuntilexitmarketsbecome

morereceptive.Thus,thereare

goodreasonsforapositiveoutlook

forsecondariesofbothkinds.

Emergingmarkets

Anactivelymanaged,dedicated

EMallocationoffersbothaccessto

increasinglydivergingpartsofa

factionalizedworldandvaluation

opportunitiesrelativetodeveloped

marketequities.

SentimentrelatedtotheChinese

equitymarketshasworsened

notablyoverthepastcoupleofyears,

withconcernsoverdemographics,

increasingconcentrationof

governmentpowerandregulations,

structuralchallengesinitsproperty

ThemesandOpportunities2024:Anageofagility9

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

Keytakeaways

market,aweakergrowthbackdrop,

andthedeterioratingrelationshipwiththeUS.Someinvestors

havequestionedthemeritsofChinaallocations.

Despitethisbackdrop,strategically,weprefertostayinvestedatnolessthanbenchmarkweights.RemovinganenormouseconomicpowersuchasChinafromportfoliosaltogetherispracticallyimpossibleandalsoabigcallthatcouldconfineinvestorstothewrongsideofhistoryinmorefavorablescenarios.Weadvocate

anallocationtoChinaofatleastbenchmarkweightsthroughabroadEMmandateorthroughseparateChinaAllandEMex

allocationstoallowassetmanagerstopositionforwhatwillcertainly

beanexcitingcenturyaheadintheemergingworld.Asanexample,

emergingandfrontiermarkets

outsideChina,suchasIndia,

MexicoandVietnam,arealreadybenefitingfromsupplychain

realignmentand“friendshoring.”

Intheshorterterm,sentiment

surroundingChinaandEMsmay

presentacontrarianopportunitytotheextentthatrisksarepricedin.Thisis,ofcourse,afluidsituation,monitoredbyourDynamicAssetAllocationteam(theirviewsasofAugust2023canbefoundonthe

MercerInsight?Community).

?Thereisanincreasingargumentforalphaacrossmultiplefronts.Thistranslatesintoagrowingcaseforincorporatinghedgefundsintoportfolios.

?Flexiblemandatesarewellpositionedtotakeadvantageofthedispersionwithincreditmarketswhilealsolimitingtherisksarisingfromsignificantconcentrationwithinequitymarkets.

?Investorscanalsoexploreopportunitiesinprivatemarkets,includingsecondarymarketsandpartneringwithhigh-qualityGPs.

?Anactivelymanaged,dedicatedEMallocationoffersbothdiversificationacrossanincreasinglymultipolarworldandvaluationopportunitytoday.

Efficiencygains

Modernportfoliotheorystates

thattheefficientfrontieristhe

setofoptimalportfoliosthatofferthehighestexpectedreturnfora

definedlevelofrisk.4Althoughthispremiseiswidelyacceptedwithininvesting,it’simportanttorecognizethatshiftsinthefinanciallandscape—mostnotably,higherbondyields

resultingfromaggressivemonetarypolicyandtherobustresurgenceofglobalequitypricesafter2022lows—havefundamentallyreshapedtheglobalefficientfrontier(Figure3,overleaf).Specifically,theseshiftshavemadeit“flatter.”

Thishasseveralsignificant

implicationsforinvestorsandtheirapproachestoportfolioconstruction:

ThemesandOpportunities2024:Anageofagility10

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

Return(p.a.)

Keytakeaways

Figure3

?Thetrade-offbetweenriskand

returnhasbecomesmaller,withasteepercurvereducingthe

incrementalreturnsoftakingonmorerisk.Comparedtotwoyearsago,investorsmayachievetheirlong-terminvestmentgoalswithsignificantlyhigherfixedincomeallocationandthusequityrisk.

?Atthesametime,inan

environmentofhigherinflationvolatility,fixedincomemaynotbeaseffectiveadiversifiergoingforward.Diversifyingdefensiveallocationsintoalternative

investments,suchashedge

funds,ratherthanrelyingentirelyonconventionalbondallocations

mayprovemorerobust.

?Vigilanceinmonitoringforfutureshiftsintheefficientfrontierawayfromitscurrentflatterposition

iscritical.

Giventheseconsiderations,thereisacompellingcaseforinvestorswithinfrequent,periodicstrategicassetallocationreviewstoacceleratethenextreview,realigningallocationstoadapttothisevolvinglandscapeandreevaluatingmedium-tolong-termportfoliopositioning.

?Theefficientfrontierhasflattenedbecauseoftherecentdivergenceinbondandequityperformance.

?Investorsmaynowhavetheopportunitytoconstructportfoliosthatmeettheirlong-termreturnobjectiveswithsignificantlylessequityriskthan

justtwoyearsago.

?Astrategicassetallocationreviewisadvisabletoassessmedium-tolong-termportfoliopositioning.

Flatterfrontiers

7%

6%

5%

4%

3%

2%

1%

3%5%7%9%11%13%15%17%19%

.2023.20222020

Source:Mercer.DataasofJuly2023.CalculatedusingMercerCapitalMarketAssumptionsforglobalallcapequityunhedgedandglobalbroadfixedincomehedged.

ThemesandOpportunities2024:Anageofagility11

Risk(p.a.)

Introduction

Supercycles

Authors

Megatrends

Contents

Summary

Regimechange

Itwould

benaiveto

assumethatthelong-termchallenges

posedby

inflationhavegoneaway.

Figure4

Supercycles

Inflationtides

Inflationhasbeenoneofthemajorthemesdrivingmarketsandinvestorthinkingoverthepasttwoyears.Wearefinallybeginningtoseeshort-terminflationpressuressubsiding,withUSinflationlevelsreachingtheirlowestintwoyearsinJune20235andtheeurozoneandPacificfollowingasimilaralbeitslowerpath.6EventheUK,whichhaspersistentlyrespondedmoreslowlythanotherregions,hasseeninflationlevelsdecline.7

Althougheasingshort-term

pressuremayprovidesomecomfortforinvestors,itwouldbenaive

toassumethatthelong-term

challengesposedbyinflationhavegoneaway.Indeed,severalfactorscontributetoongoingstructuralinflation