Conning ConnText Podcast: Resilient Economy Faces Growing Challenges from Geopolitical Risk, Inflation and U.S. Political Disfunction
October 25, 2023
HARTFORD, CT – October 25, 2023 —Leading global investment management firm Conning has posted its latest Conning ConnText quarterly podcast, which discusses both new and ongoing challenges to an otherwise resilient economy and concerns of how central banks’ inflation-fighting polices may trigger an economic slowdown.
Rich Sega, Conning’s Global Chief Investment Strategist and host of the podcast, said that the U.S. has been in a “Goldilocks” economy for a good portion of the year thanks to resilient labor markets, manufacturing, and housing, but bears – in the form of geopolitical risk, inflation and political disfunction - are lurking.
“We continue to think that the three bears will eat Goldilocks, that believers in a ‘soft landing’ will be disappointed, that a recession is likely, and that it will be shallow and relatively short,” Sega says.
One fast-growing area that will likely feed future economic growth, Sega said, is artificial intelligence (AI). He discussed the potential and risks of AI with Ole Jorgensen, research director with Global Evolution, Conning’s emerging market debt affiliate based in Kolding, Denmark.
Global Evolution has incorporated some AI capabilities in its investment process, Jorgensen said, and offers several benefits. One group of AI outputs are what he calls “pattern recognition … which is something that will give us much smarter, much more accurate signals that we can use as part of the investment process.” Another is “insights” which can “tap into the sentiment or the perception of what is communicated in media, central bank communication, earnings calls and many other things,” allowing the firm to “measure the immeasurable … which is new,” Jorgensen said.
However, it’s not time to just turn over things to AI. “It is not enough yet just to let the AI run by itself. We need to interpret it, vet it and make sure that we understand what's coming out of it,” said Jorgensen.
To access the podcast and subscribe to the Conning ConnText podcast, click here.
Conning (www.conning.com) is a leading investment management firm with over $202 billion in global assets under management as of September 30, 2023.* With a long history of serving the insurance industry, Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
* As of September 30, 2023, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited (CHL) and Cathay Securities Investment Trust Co., Ltd. (SITE). SITE is a separate entity under Cathay Financial Holdings Co., Ltd which is the ultimate controlling parent of all Conning entities.
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