Asset Class Views

Global Asset Allocation Views 1Q 2023

Expecting subtrend global growth and cooling inflation, we remain underweight equities and lean away from U.S. stocks In duration, we are neutral, with a preference for U.S. Treasuries. We upgrade credit to overweight, but specifically for investment grade.

Global Fixed Income Views 1Q 2023

Recession is our base case scenario, at 60%. We’re keeping Sub Trend Growth at 30% while reducing Above Trend Growth to 0% and Crisis to 10%. Our best idea: Use every backup in yields to add high quality duration, such as investment grade corporate bonds.

Global Equity Views 3Q 2022

Though global equity markets are already down more than 20% this year, our portfolio managers remain cautious. In a downturn, quality matters, in managements and balance sheets.

Factor Views 4Q 2022

The factors that we favor held up well in a challenging 3Q 2022 market environment: Equity momentum, merger arbitrage and macro carry were all positive, and losses across other factors were relatively limited. We maintain our positive outlook for equity factors, which appear cheap.

Market Insights

Portfolio Insights