Timely commentary, strategic perspectives and in-depth analysis from our investment teams to help guide your portfolio decisions.
We have growing conviction in a return to trend-like growth and an extension of the cycle. We overweight credit, which should offer equity-like returns over the next two to three quarters. In our equity overweight we favor the U.S., Japan and emerging market ex-China equity. We are neutral overall on duration.
Amid the debate around the rate cut, we nod to policymakers for cooling a supercharged economy, though risks remain. Our overwhelming bias: investments benefiting from proactive central bank easing, including carry-oriented ideas and yield curve steepeners. Our ABCs for a rate-cutting cycle? Anything But Cash.
Profits remain healthy but momentum is slowing and valuations are high in the all-important U.S. market. Many of our investors favor defensive and higher quality names while remaining skeptical about AI enthusiasm.
As equity and credit markets climbed, factors posted small gains in Q3, overcoming a bout of mid-summer volatility. U.S. equity factors led the way and commodity factors performed well; FX carry and momentum had a tough quarter.
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