KKR & Co. said in its mid-year update on global macro trends, that while it doesn't expect a recession or a bear market, the investment firm expects "limited upside" and "higher volatility" for financial assets, which would include stocks, than in prior years. Henry McVey, head of KKR's global macro and asset allocation team, said he longer expects any interest rate increases in 2016. He continues to favor real assets with yield and growth, but also said he believes certain commodities prices are bottoming. "Markets have cut a wide swath so far this year, enticing investors to buy and/or sell often at what was - in hindsight - likely the time to do the exact opposite of what one's emotional core was suggesting," McVey said. "We stick to our base case that we remain in an 'Adult Swim Only' investment environment, as we see more asynchronous growth ahead."
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