After decades of windfall gains from lowering yields and richer asset valuations, Co-Head of Global Portfolio Solutions Group at AQR Capital Management Antti Ilmanen has a warning for investors:
“40 years ago, everything looked cheap, which implied high expected returns. Now it’s the opposite. We’re looking at low prospective returns. We have been borrowing returns from the future. The enrichment of bonds has made all other asset class expensive,” Ilmanen says in an interview with AMWatch at the Nordic CFA Investment Conference in Oslo earlier this month.