Tactical Asset Allocation

September 2025 update

Our framework remains in a contraction regime for the 15th consecutive month, so we’re maintaining our defensive posture. We’re overweighting bonds relative to stocks, favoring defensive sectors and factors, and holding the regional composition between US, international developed, and emerging market stocks in line with our benchmark asset allocation. In fixed income, we maintain a moderate overweight in duration and underweight in credit risk. We moved to a maximum underweight in 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 September 2025 Tactical Asset Allocation update.

Topics include:

• Macro update — The global picture remains broadly stable. Economic data are performing in line with expectations and macro volatility is subdued.
• Markets — Our barometer of global risk appetite improved marginally over the past month but remains on a decelerating trend. Global stock markets outperformed bond markets, and credit spreads stabilized at cyclical lows.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.