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 views

U.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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