PT - JOURNAL ARTICLE AU - Antti Ilmanen TI - Investing in Interesting Times AID - 10.3905/jpm.2023.1.461 DP - 2023 Jan 20 TA - The Journal of Portfolio Management PG - jpm.2023.1.461 4099 - https://pm-research.com/content/early/2023/01/20/jpm.2023.1.461.short 4100 - https://pm-research.com/content/early/2023/01/20/jpm.2023.1.461.full AB - What happened to major asset prices before 2022 and what changed in 2022? This article covers six key themes. 1) The backdrop of high asset valuations and low expected returns before 2022. 2) Investor responses to low expected returns, notably the boom in flows to private assets. 3) A revised picture after 2022: much higher expected returns at least for bonds (less for private assets so far) after the biggest inflation scare in a generation and central bankers’ attempt to contain it. 4) Contrasting fortunes and prospects for long-only assets and long–short strategies. 5) Understanding the rollercoaster ride of value-versus-growth stock selection strategies. 6) The important role of risk-mitigating strategies, especially trend following, amid protracted bear markets and elevated macro volatility.