Tactical Asset Allocation

January 2026 update

Global growth is broadening, with improvements in developed markets outside the US, and inflation continues to moderate across regions. This environment should support a broadening of equity market performance across sectors and regions. Our Global Tactical Asset Allocation Model is overweight stocks versus fixed income, favoring value and small- and mid-cap stocks. We’re moderately overweight credit risk, neutral duration, and underweight 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 January 2026 Tactical Asset Allocation update.

Topics include:

• Macro update — Growth continues to gain momentum across developed markets outside the US. All countries covered in our framework improved over the past month and continue to move above their long-term trend. Furthermore, the improvement was broad-based across economic sectors.
• Markets — Given expensive valuations across most asset classes, risks remain asymmetrically skewed in the short term, with more downside risk to be expected in case of negative economic surprises relative to the upside potential from favorable news. This asymmetry is more evident in the technology sector.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.