The world has checked into Hotel California – a world where low interest rates are failing to stimulate demand and monetary policy is less effective. It’s a world that is structurally changed and from which we can check out any time we like, but we can never leave. For investors, the cost of checking in will be drawdowns that are less frequent, but more VUCA. Successful adaptation will require a re-think of traditional strategic asset allocation approaches; in particular a trade-off between asset classes that are traditionally negatively correlated to risk ...