Tactical Asset Allocation: August update

August 2024 update

Following last month’s shift to a contraction regime, our macro framework points to further deceleration in economic activity and market expectations of future growth. We’re underweight portfolio risk in our Global Tactical Asset model,¹ underweighting equities relative to fixed income. We’re favoring US equities, and defensive sectors with quality and low volatility characteristics. In fixed income, we’re underweight credit risk and overweight duration via investment grade credit and sovereign fixed income, at the expense of lower quality credit sectors. 

Get the full story

See what our macro regime framework is telling us — and what we’re doing in response — in our August 2024 Tactical Asset Allocation update.

Topics include:

• Macro update — Our global leading economic indicator continues to decelerate and moves further below its long-term trend. Recent negative momentum is coming predominantly from the US and China.
  
• Markets — Our global risk appetite framework points to additional weakness in market sentiment and future growth expectations, confirming the inflection point we identified last month.
• Investment positioning — See what we’re favoring in equity, fixed income, and currency markets.