Tactical Asset Allocation

July 2025 update

Economic data around the world remain broadly stable. Developed markets are showing positive momentum, led by consumer sentiment surveys, stable business surveys, and improving manufacturing activity. Against this backdrop, the performance of risky assets continues to improve, with stocks marginally outperforming bonds, and credit spreads tightening to lower levels. While our global risk appetite indicator has moderately improved, growth expectations haven’t. Our framework remains in a contraction regime for the 13th consecutive month.

Get the full story

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

Topics include:

• Macro update —  Debt sustainability risks are weighing on the dollar rather than bond yields.
• Markets — Our barometer of global risk appetite has recently stabilized, but remains on a decelerating trend, historically consistent with deteriorating growth expectations.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.