I'm preparing a semi-final interview for National Pension Service Fund which is the largest institutional investor and pension fund in Korea.
Actually since 2021, I've never put any investment on equity market due to an academic efforts. But recently, I have to follow up the macro trend as soon as possible. The core factor is the interest rate recently originated from the US Fed. Fed is continuously raising up the base rate as a counter action of COVID triggered massive liquidity.
In that, after December 2021, equity market has fallen quickly like charts below no matter what countries are.
These days there are some key takeaways from global economy and equity market.
- US CPI and PPI growth rate is getting stabilized as of Novemeber 2022.
- Equity market cap is going up with the expectation of stabilized economic status, such as CPI and PPI growth.
- However, the increased interest rate made institutional investors so called the "LPs" hard to invest in additional investment opportunity due to higher expected returns.
So, what's next?