Asset Allocation

Earlier this month, we wrote about the high cost of staying in cash in the Euro market. In that note, we argued that a combination of inflation, low front-end rates and steeper curves, favoured a rotation out of cash and cash like instruments into other alternatives that delivered better real returns, including credit. Building on this argument, we wanted to extend this perspective to the US dollar market and highlight a few key points.

In November 2023, we estimated that holding cash, as opposed to staying invested, could cost investors 10-30% over a three-year period. At the time, we highlighted that interest rates had reached their cyclical peaks and were likely to decrease from that point.

Markets have been showing signs of fresh optimism, but risks still linger. In this Investors’ Outlook, the Multi Asset Boutique explores the latest macroeconomic trends and geopolitical developments and explains what it all may mean for investors.

As investors have rushed to price in positives, is optimism being stretched too thin? The Multi Asset Boutique explores trade, the US dollar, and the state of the economic fabric in the latest Investors’ Outlook.

Our latest Quanta Byte explores why traditional commodity indices, with their static, production-based weightings and yearly rebalancing, often miss out on the full return potential in commodity markets. Discover how active management can unlock true diversification, capitalize on short- and long-term opportunities, and adapt to shifting market dynamics.

Where are consumer and business sentiment headed from here? What’s next for corporate investments? And just how much damage has trade-related uncertainty already inflicted on the economy? After a month marked by intense volatility, these are some of the questions on many investors’ minds. The latest Investors’ Outlook explores the key developments.

Investors have faced a period of renewed uncertainty, with swings in market sentiment amid new tariffs, fast-changing economic policies, and geopolitical headlines. The latest Investors’ Outlook decodes the key trends.

Donald Trump imposes steeper-than expected reciprocal tariffs on US trading partners. The Multi Asset Boutique neutralizes its US equity overweight in light of the uncertainty.

February opened with markets stepping into a dance of quarterly earnings and economic policy moves that drove market sentiment in tandem. Learn more in the latest Investors’ Outlook.

Since the Federal Reserve first cut interest rates in September, we have seen the most aggressive rise in US Treasury yields of any cutting cycle over the past 40 years.

The return of President Donald Trump is setting a new tune, and markets are adjusting their instruments. This Investors’ Outlook breaks down what his early moves might mean for the year ahead, delves into the German economy, and offers insights into the Multi Asset Boutique’s asset allocation.

Will volatility in government bonds continue? Has fixed income seen “peak ESG”? And what will be the biggest driver of returns?