For investors, macro matters

In today’s environment of global uncertainty, external market shocks can come fast and furious, with the power to roil commodity and financial markets. Adding complexity, global market linkages and fast-moving technology can cause unexpected ripple effects across asset classes in major and emerging markets. Without insights into future macro trends, and how they may diverge under alternative scenarios--such as a deeper Eurozone crisis, China economic downturn or Mideast military flare-up--even the most sophisticated asset allocation models will fail to deliver the right investment direction.

To fill this market gap, Oxford Economics, a world leader in economic forecasting, has launched the Global Investment Scenario Service, an advanced tool for assessing the impact of economic and geopolitical developments on portfolio strategies across asset classes. At the heart of this service is Oxford Economics’ highly respected Global Economic Model, used by over 100 leading financial, corporate and government institutions for forecasting and scenario analysis. This world-class econometric platform links country models through trade flows, commodity prices and financial effects to reflect how economies interact with each other and drive asset prices.

What the service includes

The Global Investment Scenario Service provides portfolio managers with all they need to risk-proof their investment portfolios from macro shocks. Each quarter, our senior financial specialists, supported by a global team of 80 seasoned economists, provide clients with in-depth insights into future macro trends and their impact on multiple asset prices and allocation strategies. Our new Global Investment Scenario Service also includes events-driven analysis to show the impact of emerging macro and market risks.

Subscribers to the Global Investment Scenario Service receive:

• A quarterly PowerPoint report that explains our baseline forecast and provides at least three alternative scenarios, including both upside and downside events. This report quantifies the impact of key “tail-risks” and opportunities for financial markets and the world economy over the next five years.
• Five-year forecasts and scenarios, updated quarterly for each of 46 countries, covering both developed and emerging markets, plus aggregates for the Eurozone and the World. These include interest rates, bond yields, credit spreads, equity prices, exchanges rates and commodity prices, as well as key macroeconomic variables such as GDP growth and inflation.
• Detailed Excel spreadsheets providing comprehensive data and forecasts for each variable for each country, both quarterly and annual.
• Eight to twelve events-driven alerts per year, in response to breaking market events, to ensure the timeliness and relevance of the scenarios to financial market participants.
• Access to our team of senior economists and strategists, who are available to answer questions on what macro events will mean for your portfolio.