KKR Releases 2023 Mid-Year Global Macro Outlook: Still Keeping it Simple

Henry McVey: Today’s asynchronous global economic recovery is providing attractive opportunities for investors who are willing to focus on long-term thematic trends

NEW YORK--(BUSINESS WIRE)-- KKR, a leading global investment firm, today released its 2023 mid-year global macro outlook by Henry McVey, CIO of KKR’s Balance Sheet and Head of Global Macro and Asset Allocation (GMAA).

In “Still Keeping it Simple,” McVey and his team outline why now is still a good time to look for compelling investing opportunities across Credit, Equities, and Real Assets, despite challenging macro conditions that may create a series of rolling recoveries and mild contractions across different sectors and economies. Against this complex backdrop, short-term trading strategies are likely to underperform, and as such, they urge investors to stay the course on deployment this year, especially when it comes to investing behind key secular trends such as the energy transition, the security of everything, and digitalization. Importantly, McVey and his team note that recent dislocations, particularly in the banking sector, have created compelling opportunities for investors in Liquid and Private Credit as well as in Asset-Based Finance. The team also remains constructive on the long-term outlook for Private Equity, Small Capitalization Stocks, International Equities, and Real Assets. The following key points underpin the team’s latest thinking:

In the piece, McVey and his team make a number of out-of-consensus calls, which include:

In addition to the aforementioned insights, the report details the GMAA team’s updated views on growth, interest rates, commodities, currencies, and asset allocation.

Links to access this report in full as well as an archive of Henry McVey's previous publications follow:

About Henry McVey

Henry H. McVey joined KKR in 2011 and is Head of the Global Macro, Balance Sheet and Risk team. Mr. McVey also serves as Chief Investment Officer for the Firm’s Balance Sheet, oversees Firmwide Market Risk at KKR, and co-heads KKR’s Strategic Partnership Initiative. As part of these roles, he sits on the Firm’s Investment Management & Distribution Committee and the Risk & Operations Committee. Prior to joining KKR, Mr. McVey was a Managing Director, Lead Portfolio Manager and Head of Global Macro and Asset Allocation at Morgan Stanley Investment Management (MSIM). Learn more about Mr. McVey here.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

The views expressed in the report and summarized herein are the personal views of Henry McVey of KKR and do not necessarily reflect the views of KKR or the strategies and products that KKR offers or invests. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. This release is prepared solely for information purposes and should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. This release contains projections or other forward-looking statements, which are based on beliefs, assumptions and expectations that may change as a result of many possible events or factors. If a change occurs, actual results may vary materially from those expressed in the forward-looking statements. All forward-looking statements speak only as of the date such statements are made, and neither KKR nor Mr. McVey assumes any duty to update such statements except as required by law.

Julia Kosygina

Source: KKR