Approach to Markets
MRB’s frameworks and in depth research are designed to identify how these macro forces will drive performance of individual asset classes over the course of the cycle. Our recommendations emphasize an integrated risk/reward analysis.
A Top Down Approach
INTEGRATED FRAMEWORKS
MRB’s unique and extensive set of frameworks helps us effectively analyze and forecast the world economy, policy and major asset markets. Our proprietary frameworks focus on the integrated nature of financial markets, both across regions and among asset classes. This approach frequently results in original ideas and great investment opportunities.
Indicators and models are used to quantify components of the frameworks, and qualitative factors help tailor the analysis to the current environment.
ANALYTICAL INFRASTRUCTURE
MRB economic and financial databases enable mass volume data analysis, statistical and econometric evaluation, and chart presentation. These databases are fed by a wide range of sources.
Our proprietary models and indicators are designed to provide forecasts/signals, fundamental pressure/tendency, and “fair value” estimates. The focus is on momentum, direction and deviations, rather than point forecasts.
THE ROADMAP
MRB builds a roadmap to indicate the underlying path of growth, inflation, policy and asset prices. This provides a trend to frame our cyclical analysis.
We identify major themes and provide a long-term outlook for absolute and relative growth, productivity rates, inflation/deflation risks, required policy adjustments, the regulatory environment, external/internal imbalances, demographics, etc. Our team then develops a multi-year view for capital markets and the global economy, which is presented in regular research reports.
CYCLICAL OUTLOOK
MRB forecast cyclical economic momentum, inflation, interest rates/policy, exchange rates, commodity prices, etc.
Asset class outlook based on economic cycle dynamics, policy environment, cyclical idiosyncrasies, risk analysis, valuations, investor positioning and technicals.
COLLECTIVE NOT CONSENSUS
The danger of creating one house view is to fall into the trap of compromising or voting on strategy. This is not a risk at MRB. Our team joins forces, so that we never need to compromise. MRB’s research team embraces internal debates, as we firmly believe that these are the areas of greatest investment opportunities.
MRB has a team of highly skilled and inquisitive researchers. We devote the resources and time to engage in original and creative thinking, as well as challenge the status quo. This process often leads to unconventional ideas as well as differences of opinion, which MRB embraces.
INVESTMENT STRATEGY
MRB establishes one comprehensive house view. Investment strategy and recommendations are based on our extensive research, proprietary frameworks, models and indicators, and the experience of senior team members.
The research team convenes on a regular basis to brainstorm, stress-test views, review internal research, and assess political & market developments to determine if any changes to our economic/capital markets outlook are warranted.