Tactical Asset Allocation

May 2025 update

For the 11th consecutive month, our framework remains in a contraction regime. Earnings forecasts are deteriorating across developed and emerging markets, led by downward revisions in the US. With uncertainty about the impact of tariffs, we’re maintaining our defensive portfolio positioning, favoring bonds over stocks. We’re staying neutral on developed ex-US stocks relative to US stocks and are overweight low volatility and quality stocks. 

Get the full story

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

Topics include:

• Macro update — While hard economic statistics will take months to reflect the impact of global tariffs uncertainty on consumer spending and investments, surveys and financial markets are already pointing to a deteriorating outlook.
• Markets — Global market sentiment resumed its decline and it is currently at lowest level registered since June 2023.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.