Multi-Asset Perspectives

Chart with Curves

Powerful Improvement Factor is Difficult to Recognize in Real Time

July 29, 2020

As U.S. COVID-19 cases increase, so does the risk that economic recovery decelerates. We think policy makers will do what it takes to sustain the recovery, and therefore continue to prefer U.S. equities over bonds.

Stock Market in Newspaper

Magnanimous Policy Makers and Less Bad News Drive Stocks Higher

June 26, 2020

Despite our expectations for a dreadful drop in 2Q20 output, we believe a recovery will commence in 3Q20 and lead to a meaningful acceleration beginning in 2021

Tall Buildings with American Flag and Blue Sky

Markets Optimistic about the Future as Economic Pain Deepens

May 26, 2020

We are still overweight U.S. large caps, believing winners will win until a broad-based economic recovery takes hold. Our preference for investment grade U.S. bonds remains; also, we now see opportunities among high yield bonds.

Risk-Assets Reprice in Crowded Flight to Safety

March 19, 2020

We consider the coronavirus outbreak a temporary shock, inducing a technical recession but not fundamentally impairing productive capacity. Considering this and an expanded equity risk premium, we see stocks as more attractive than bonds.

Read More

Coronavirus Shock Introduces New Layer of Uncertainty

February 27, 2020

We continue to believe the economies of China, Europe and Japan are in the process of reaccelerating. Although the coronavirus alters the near-term outlook for Asia, underlying market fundamentals historically have prevailed once an outbreak subsides.

Read More

Good Tidings for Investors Heading into Year-End

January 3, 2020

After a tremendous run in equities and more than a decade without a U.S. recession, we expect muted, albeit positive forward returns. Our portfolio overweight to equities continues to be fortified by high-grade fixed income.

Read More