Tactical Asset Allocation

December 2025 update

The backdrop is favorable for growth and limited inflation pressures, supported by monetary and fiscal policy. Our Global Tactical Asset Allocation Model¹ is overweight stocks versus fixed income, and favors value and small- and mid-cap stocks. We’re moderately overweight credit risk and neutral duration. We remain underweight the US dollar.

Get the full story

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

Topics include:

• Macro update —  The US economy is broadly stable, sustaining a growth rate that’s only marginally below trend based on our framework. Growth is gaining momentum in the rest of the world, led by non-US developed markets.
• Markets — We believe a Goldilocks scenario remains supportive of risky assets, with more upside in stocks than fixed income.
• Investment positioning — See what we’re favoring in stock, bond, and currency markets.