Hamburger
Request a demo
Close
Close
Nasa Hi5Dx2Obas Unsplash
23.06.2022
Recession fears escalate
- how Ai helps asset allocation
Powell’s testimony & the fall in crude oil has driven recession fears to the forefront of investors’ minds.

Traditionally, equity allocators needed to process hundreds of variables (bottom up & top down) to decide the relative winners & losers should the economic cycle turn deflationary.

Or, they can use Ai to screen global equity markets for their independent relationship with inflation expectations.

The chart below shows global equity indices. Markets to the right of the vertical line want rising inflation expectations & therefore suffer in a deflation scenario.

The y-axis is the Qi Fair Value Gap: macro-warranted fair value. Indices in red above the zero bound are rich to model, the green below are cheap.
Globalequitiesinfl
For a US equity allocator, for example, the chart immediately identifies the Russell 2000 as the most vulnerable to recession – highly reliant on rising inflation expectations & slightly rich to macro.

For anyone with an Asian focus, Singapore EWS is slightly cheap to model but it is the most reliant on reflation.
  • Qi portal users – use Optimise Trade Selection to screen your asset class for sensitivity to inflation expectations.
  • Qi API users – replicate the chart above on your portfolio’s holdings.
Close
Thank you for request
A team member will contact you soon shortly.
Request a demo
Explore Quant Insight's unique data, analysis and solutions to understand how you and your team can easily integrate our information into your workflow.
Book a 15 minute intro call here



Or, simply complete the short enquiry form on this page, and one of our team will be in touch via email.
Name: 
Company email: 
Tel number (optional): 
Company: 
My geographical location is:

My asset class focus is:
Submit
Close
Microsoftteams Image 3
Quant Insight’s Macro Analytics
on Goldman Sachs Marquee
Goldman Sachs is embedding Qi’s data-science-driven
macro factor risk data into Marquee to offer risk
management capabilities that help provide clarity to your
investment analysis as you navigate your portfolio exposures,
asset by asset, through dynamic market conditions.
Goldman Sachs is embedding Qi’s data-science-driven macro factor risk data into Marquee to offer risk management capabilities that help provide clarity to your investment analysis as you navigate your portfolio exposures, asset by asset, through dynamic market conditions.