Macroeconomic Implications for Investment Strategies

Your firm is tasked with providing investment recommendations in an environment marked by rising inflation and increasing interest rates. As a portfolio manager, you must evaluate how these macroeconomic conditions could affect client portfolios across different asset classes.

Discuss the potential implications of rising inflation and increasing interest rates on equity markets, fixed income assets, and alternative investments. Provide your analysis on how these factors influence asset allocation decisions and the strategies you might recommend to clients in response to these macroeconomic challenges.