Tactical Asset Allocation

March 2025 update

Our framework remains in a contraction regime and we’re maintaining defensive portfolio positioning, favoring bonds over stocks. We’ve upgraded developed ex-US stocks to neutral relative to US stocks and are favoring defensive stocks with low volatility and quality characteristics.

Get the full story

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

Topics include:

• Macro update —  Steady improvements in leading economic indicators across regions led by the US and eurozone. Consumer sentiment weakness has been offset by a manufacturing business survey rebound, improving inventory cycle, and steepening global yield curves. China remains stable. 
• Markets — Shifting market dynamics are leading to downward revisions in US earnings expectations, while Europe sees upward revisions from an expansionary fiscal impulse and defense spending plans.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.