Capital Markets Outlook | Q2 2021
Asset Allocations: Favoring asset classes that can benefit from the cyclical recovery
|
Current quarter Previous quarter Change from previous quarter |
Underweight | Neutral | Overweight |
|---|---|---|---|
| Equity | |||
| U.S. large cap | |||
| U.S. small cap | |||
| U.S. value | |||
| U.S. growth | |||
| Europe | |||
| Japan | |||
| Emerging markets | |||
| Fixed income | |||
| U.S. government | |||
| U.S. investment-grade corporates | |||
| U.S. mortgage-backed | |||
| U.S. floating-rate bank loans | |||
| U.S. high yield | |||
| Non-U.S. developed country | |||
| Emerging markets | |||
| Commodities | |||
| Cash |
Currency viewsU.S. dollar versus |
Favor other | Neutral | Favor dollar |
|---|---|---|---|
| Euro | |||
| Pound | |||
| Yen |
Overweight to equities
Value, small caps, and non-U.S. markets look attractive.
Moving to a high yield overweight
Credit risk may be attractive as the economy improves.
Maintaining commodities overweight
Strengthening demand is supportive.
Don't fall for inflation head fake
April 12, 2021 | Capital Markets Outlook
Large, repeated government stimulus packages do not necessarily lead to inflation. See what this means for our strategy.
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