A snapshot of current views on equity, fixed-income and alternative asset classes — updated monthly to help you tactically adjust for opportunities and risks.
Equity momentum has been strong, and volatility remains low. The only things that keep us from having higher optimism in equity markets are the fear of overexuberance and lofty valuation levels. We believe tilts toward risky assets will be rewarded for a while as global growth reaccelerates.
Fixed income provides diversification in the form of underlying duration; it’s an attractive way to play recovery on the back of spread compression. We believe that credit markets will continue to attract attention as investors hunt for higher yields. But we acknowledge reduced opportunities for upside.
While we see opportunities for alpha in some areas of the alternatives markets, traditional markets are a more attractive opportunity to spend a risk budget in this cooperative environment.
Within fixed income