Capital Market Expectations and Asset Allocation Strategies

As the chief investment officer for a large institutional investor, you are preparing to present your team's analysis of capital market expectations for the upcoming year. Recent economic data, including GDP growth forecasts, inflation predictions, and changes in monetary policy, are critical to your analysis. Your task is to articulate how these elements influence expected returns across various asset classes such as equities, fixed income, and alternative investments. Discuss the implications of your findings on asset allocation strategies and the overall portfolio risk profile.