An Alternative Universe

摘要

In a volatile market made more difficult by government regulation, most institutional investors in a new survey think that the real U.S. economy is only limping along. "Central bank policy is distorting price discovery everywhere," says the manager of a family office. "A change in central bank behavior would trigger the repricing of risk across all asset classes."The study, conducted by Bloomberg Audience Insights in March 2014, indicates that the challenge is finding lower-risk investments when rates are at all-time lows.Jeff McConnell, director of institutional investments at Graystone Consulting, a business of Morgan Stanley that delivers a complete range of investment consulting services to institutional clients, explains that investors often overreact to major economic events by disproportionately adjusting their risk profiles. He says that some institutional investors understated their risk profiles prior to 2008, driving virtually everyone to the same crowded asset classes. Frustrated investors echo McConnell's analysis: "It's a tough time for innovation," laments one CFO who manages a defined benefit plan. "We're all in the same place now as we were 10 years ago-a tough place, a stupid place."