Group 1 - The financial markets are exhibiting contradictory characteristics, with persistent investor anxiety due to high inflation and ongoing policy uncertainties, yet the US stock market has shown an increase this year [2] - The S&P 500 index experienced a significant decline of 20% at its lowest point earlier this year, coinciding with the announcement of a protectionist trade policy in April [2] - Various policy uncertainties, including spending cuts, expanding US deficits, and immigration policies, are contributing to investor unease, alongside warning signs such as rising credit card default rates and weakened consumer data [2][3] Group 2 - Stubborn inflation remains a major concern, with central banks, including the Federal Reserve, indicating a need to address inflation despite growth risks [3] - Geopolitical tensions globally, including wars and climate-sensitive issues, are exacerbating uncertainty, potentially putting risk assets under pressure again [3] - The current market environment prompts a reevaluation of capital market expectations, suggesting that many portfolios may benefit from alternative sources of returns and diversification strategies, particularly hedge fund strategies [3][4] Group 3 - There are strong economic reasons for investors to consider diversifying their portfolios with strategies like hedge funds, as conditions for achieving stable, low-correlated, alpha-driven returns have significantly improved [4] - The differentiation in returns and increased macroeconomic volatility are driving changes in investment strategies, highlighting the need for diversification [4][5] - In the context of rising and persistent inflation, traditional bonds may not always serve as effective hedges, leading investors to seek strategies that provide expected diversification benefits [5]