You are a Portfolio Manager at a leading investment firm. The global economic landscape is evolving due to factors such as rising inflation, shifting monetary policies, and geopolitical tensions. As you prepare a report for your firm’s investment committee, you need to outline your capital market expectations that reflect these conditions. Specifically, address how expected inflation rates, interest rates, and economic growth forecasts might influence the returns of various asset classes over the next five years.

Your analysis should consider the following elements:

• Expected inflation trends and their impact on asset class returns
• Central bank policies and interest rate expectations
• Projected economic growth rates across different regions
• Potential volatility and risks in pursuing these capital market expectations

Conclude your report with potential implications for portfolio construction based on your expectations.