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 continue to see strong equity momentum and relatively low volatility. We have upgraded our view on emerging markets. However, there’s still a threat of renewed trade tension, particularly as we head into an election year, which tempers this view.
- Treasuries no longer appear to have a clear trend in either direction. We saw a steady rise in yields until the fourth quarter of 2018, followed by a sharp pullback going into the summer of 2019. We’re back to a world of rangebound yields relative to current levels, and neutral policy-level allocations to duration are appropriate.
Non-directional strategies — such as absolute return — present compelling opportunities. We also believe commodities will do relatively well based on idiosyncratic risks for commodity markets that are asymmetrically tilted to the upside.
Within fixed income