Asset allocation Tactical Asset Allocation

May 2026 update

While market participants aggressively priced in optimism for a potential resolution to the US–Iran conflict, uncertainty surrounding negotiations persists, and the economic ramifications of a significant disruption to the global energy supply aren’t clear. As a result, we remain in a slowdown regime. Our Global Tactical Asset Allocation Model¹ remains moderately overweight stocks relative to fixed income, with a focus on defensive factors and sectors.

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

Topics include:

• Macro update — Uncertainty about oil supply and key energy infrastructure remains paramount, continuing to raise risks to global economic stability.
• Markets — We’re shifting positioning from neutrality to a preference for the US relative to developed ex‑US markets.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.