Short-term tactical outlook

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[ "Market Outlook" ]
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A snapshot of current views on equity, fixed-income and alternative asset classes — updated monthly to help you tactically adjust for opportunities and risks.

Overall positions

Key Takeaways

Signals for equities are on balance neutral at the moment. Momentum and trend signals are supportive, and even the brief episodes of downward market action in September and October have not been enough to impact the recovery trend seen since the spring. On the other hand, volatility signals are suggesting greater caution, and valuation continues to look stretched for many equity markets.


Opportunities in fixed income continue to look attractive, ranging from municipal bonds in the U.S. to local emerging market debt internationally. Fixed-income markets also continue to provide diversified outcomes in a volatile world — spread and credit components are trading in line with equity, and the underlying duration is providing a ballast on risk-off days.


While truly non-directional strategies represent excellent opportunities to diversify, many alternative strategies have inherent market beta. Right now, we favor direct exposure to traditional equity and fixed-income assets and believe policy-level allocations to alternatives are appropriate.  

Within equities


Within fixed income

Within alternatives