258: Portfolio Construction for a Changing World: Adapting to A Market Regime Shift

About this episode

The episode discusses the evolving landscape of portfolio construction in response to changing market dynamics and megaforces.

Portfolio construction is being redefined as investors face a fundamentally different market regime. Higher inflation, shifting interest rate dynamics, and accelerating megaforces like AI and geopolitics are challenging long-held assumptions about diversification and asset allocation across capital markets. In this episode of The Bid, host Oscar Pulido sits down with Vivek Paul, Head of Portfolio Research and UK Chief Investment Strategist at the BlackRock Investment Institute. Together, they explore why traditional portfolio construction frameworks may no longer be sufficient and how investors are adapting to a world of greater uncertainty, dispersion, and structural change. Vivek explains how megaforces such as AI investing and geopolitical fragmentation are creating unprecedented outcomes across markets, making static asset allocation less effective. He outlines why portfolio construction must become more dynamic and granular, with a deeper focus on underlying risk exposures rather than broad asset class buckets. The conversation also examines the growing importance of private markets, active strategies, and scenario analysis in navigating today’s environment. Timestamps 00:00…

People in this episode

Host: Oscar Pulido

Guest: Vivek Paul

Topics covered

• portfolio construction
• market regime shift
• asset allocation
• inflation
• geopolitics
• AI investing
• private markets

Keywords

• portfolio construction
• market regime shift
• asset allocation
• inflation
• geopolitics
• AI
• private markets
• active strategies
• scenario analysis

Mentioned in this episode

Organizations: BlackRock, BlackRock Investment Institute

Places: UK

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