Influences of Macroeconomic Factors on Portfolio Management

As a portfolio manager, understanding the macroeconomic environment is essential for making informed investment decisions. Consider the current state of the global economy, including trends in interest rates, inflation, and employment levels.

In your essay, explain how these macroeconomic factors could influence portfolio management and investment strategies. Specifically, focus on how changes in interest rates might affect asset allocation decisions, and how inflation may influence investment returns.