Investing in Equity Markets

The past decade of zero interest rate policy and quantitative easing versus the current policy for you as a top-down macro strategist is the more challenging period. One of the things we've been doing at Goldman Sachs and in my team is really to rethink our playbook. So what we are seeing now also means lower correlations across different markets. There may be more opportunities for a relative value trade so more opportunities for diversification. You need lower leverage than you used to need before. We think this is a great environment for alpha. It's agreat environment for active management but you cannot run the size of assets that we are running with just active management. The importance of risk management and downside risk control becomes