Capital Markets Outlook  |  Q1 2022

Asset Allocations: We have reduced risk and adopted a tactically neutral posture.

  Current quarter
  Previous quarter
    Change from previous quarter
Underweight Neutral Overweight
U.S. large cap
U.S. small cap
U.S. value
U.S. growth
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

Currency views

U.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.

Revisiting the rates conundrum

January 12, 2022  |  Capital Markets Outlook

Bond bears expecting bad news in 2022 should think about the stubbornly low yields of the past two decades.

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