A snapshot of current views on equity, fixed-income and alternative asset classes — updated monthly to help you tactically adjust for opportunities and risks.
Continuing concerns over supply chain disruptions could result in higher volatility over the coming months, and we could see a decelerating pace of earnings improvements. However, while acknowledging that markets are at or near all-time highs, we believe tilts toward risky assets will continue to reward investors.
The fear of future hawkish interest rate policy and rising yields has us concerned about fixed-income allocations. 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.