The Four Phases Framework
In the previous chapter, we demonstrated the importance of the business cycle and argued in favor of understanding it in terms of the output gap. But we said only a little about asset class returns over the cycle. This is where macro meets the markets and is the focus of this chapter.
- Ilmanen, Antti., Thomas Maloney and Adrienne Ross. 2014. “Exploring Macroeconomic Sensitivities: How Investments Respond to Different Economic Environments”, The Journal of Portfolio Management, 40(3), Spring.Google Scholar