Tactical Asset Allocation

October 2025 update

Our macro framework remains in a contraction regime. We continue to maintain a defensive posture, overweighting bonds relative to stocks. For stocks, we’re favoring defensive sectors and factors, while holding a neutral regional stock exposure in line with our benchmark. In fixed income, we maintain a moderate overweight in duration, and an underweight in credit risk and the US dollar.

Get the full story

See what our macro regime framework is telling us — and what we’re doing in response — in our October 2025 Tactical Asset Allocation update.

Topics include:

• Macro update —  The macro environment remains in transition. Our indicators point to rising uncertainty about the economic environment.  Our global leading economic indicator is gradually rising towards its long-term trend
• Markets — Except for falling bond yields, global financial markets seem reluctant to price in the low growth environment, with stock markets still fueled by enthusiasm surrounding the tech super-cycle.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.