A snapshot of current views on equity, fixed-income and alternative asset classes — updated monthly to help you tactically adjust for opportunities and risks.
We’re optimistic on equities because of the backdrop of recovery — both in terms of earnings and the economy. Lofty valuations are still a concern, but we believe tilts toward risky assets will continue to be rewarded as global growth reaccelerates.
Despite the market pricing in higher yields, fixed income provides diversification in the form of underlying duration. Credit markets will most likely continue to attract attention as investors hunt for higher yields. But there are reduced opportunities for upside.
While we see opportunities for alpha in some areas of alternatives markets, traditional markets are a more attractive opportunity to spend a risk budget in the current environment.
Within fixed income