Asset allocation Tactical Asset Allocation

August 2026 update

Our framework continues to suggest the global economy is in a slowdown regime, with growth above its long-term trend and decelerating. Risk sentiment is being pulled in opposing directions: Renewed geopolitical escalation in the Middle East is pushing energy prices higher, while resilient economic growth and robust corporate earnings are continuing to provide support. These competing headwinds and tailwinds, coupled with persistent inflation and new uncertainty around the Federal Reserve’s path, reinforce our position to remain diversified and hedge growth risks while preserving risk-on optionality. Our Global Tactical Asset Allocation Model¹ remains modestly overweight equities relative to fixed income, with an emphasis on diversification between and within asset classes.

Get the full story

See what our macro regime framework is telling us — and what we’re doing in response — in our August 2026 Tactical Asset Allocation update.

Topics include:

• Macro update — resilient growth meets rising policy and geopolitical uncertainty.
• Markets — Strong fundamentals continue to provide a tailwind to stocks, while geopolitical risks have resurfaced, resulting in increased volatility.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.