The gilded era came to an end after the 2008 financial crisis. Returns slumped as central banks flooded the market with cheap money, upending traditional relationships between asset classes and economic data. Volatility fizzled and many managers struggled to profit from betting against stocks as markets entered their longest bull run in history. Over the past decade, hedge funds have produced less than one-third of the annual returns of stocks.
With the current environment of near 0% rates, what goes down must come up? Not to mention the act of differing inflation through seemingly infinite Monetary & Fiscal Policy, will the gilded era for PC / VC come to an end and make room for Hedge Funds as rates must be hiked to cool off the economy in 2022/24? Not to mention the near term volatility of COVID vaccinations, the election and eventual rate hikes?
Just an undergrad trying to link economic indicators with an industry of interest.
Hi CC2IB, check out these resources:
I hope those threads give you a bit more insight.
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