BlackRock's Li: Goldilocks Outcome for Markets Is 'Off the Table'

The video discusses a significant shift in the economic environment from a demand-driven to a supply-driven regime, impacting growth and inflation. This change necessitates adjustments in investment strategies, including reducing portfolio risk and focusing on quality. The future market is expected to have lower returns and higher volatility, requiring dynamic portfolio management. The Goldilocks scenario of simultaneous bull markets in equities and bonds is no longer viable, and investors must adapt to shorter cycles and increased macro and market volatility.

What adjustments are being made to portfolio risk according to the text?

What implications does the new market regime have for investment strategies?