Peaks and valleys: Navigating the rocky market landscape
Entering the fourth quarter of 2022, our outlook acknowledged a hard truth for investors nursing wounds from the steep market downturn: We’re not out of the woods yet. That theme still holds, but the contours of the investment landscape have evolved. One primary obstacle — stubbornly elevated inflation — looks a little less imposing, while another — a projected recession affecting countries around the globe — has been brought into sharper relief.
Which asset allocation decisions may be best suited to this shifting backdrop? Our Global Investment Committee highlights several key themes to guide portfolio construction over the next six to 12 months.
- Adopt a less cyclical stance
- Strengthen core bond holdings
- Carefully assess public vs. private allocations
