Tactical Asset Allocation: September update

September 2024 update

Despite a roundtrip price action, we believe August was a pivotal month for markets going forward, marking a shift from inflation and artificial intelligence to growth and employment as primary drivers of market performance. We continue to underweight portfolio risk in our Global Tactical Asset model,¹ underweighting equities relative to fixed income. We’re still favoring US equities, and defensive sectors with quality and low volatility characteristics. In fixed income, we continue to underweight credit risk and overweight duration via investment grade credit and sovereign fixed income, at the expense of lower quality credit sectors. 

Get the full story

See what our macro regime framework is telling us — and what we’re doing in response — in our September 2024 Tactical Asset Allocation update.

Topics include:

• Macro update — Global leading economic indicators are still indicating a soft landing, with growth below trend but stable, inflationary pressures falling, and global risk appetite decelerating for the past couple of months, pointing to downside risks to growth over the remainder of the year
  
  
• Markets — August was pivotal for markets going forward, in our view delivering the long-waited catalysts to shift markets attention to growth and employment, after two years where inflation and artificial intelligence took center stage as primary drivers of performance.
• Investment positioning — See what we’re favoring in equity, fixed income, and currency markets.