Analyzing Macroeconomic Implications on Investment Strategies

As a portfolio manager for a large institutional fund, you are required to provide a comprehensive macroeconomic analysis to support the fund's investment strategy. Recently, the economy has been experiencing persistent inflation, coupled with tightening monetary policies from the central bank. International trade relationships are also shifting due to geopolitical tensions, leading to supply chain disruptions.

In this context, analyze the implications of these macroeconomic changes on bond and equity markets. Discuss how these factors impact expected returns, risk assessments, and asset allocation strategies for your fund. Additionally, consider how these macroeconomic conditions might influence the investment strategies of your competitors.