Asset Allocations: We have reduced risk and adopted a tactically neutral posture.
Change from previous quarter
|U.S. large cap|
|U.S. small cap|
|U.S. investment-grade corporates|
|U.S. floating-rate bank loans|
|U.S. high yield|
|Non-U.S. developed country|
Currency viewsU.S. dollar versus
|Favor other||Neutral||Favor dollar|
Neutral on equities
No longer positioned for the reflation trade, we have moved to neutral weightings in equity classes.
Slight preference for high yield
Given the global search for yield, we favor high-yield bonds over assets like emerging market debt.
Commodities remain neutral
After a volatile year for commodity prices in 2021, we remain neutral.