Asset Allocation Update Taking stock of risky asset valuations In this Update, we take a look at the valuations of a broad range of the “risky” assets that we cover on our Asset Allocation service. We think that six key points stand out. 14th May 2021 · 4 mins read
Commodities We think that commodities & US equities will diverge While commodities and US equities often move in the same direction, this is not always the case. We expect poor returns from commodities over the next few years, but reasonable returns from US... 29th April 2021 · 3 mins read
Asset Allocation Update Another look at the valuation of the US stock market Although the valuation of the US stock market is now approaching its peak during the dot com bubble, we doubt that it will reach such giddy heights. This reflects our forecast for a renewed rise in... 28th April 2021 · 6 mins read
Asset Allocation Update EPS, valuations & sector rotation Given the outlook for corporate earnings and Treasuries, we don’t expect the recent partial unwinding of the rotation trade in the US stock market to last. On the contrary, we expect the rotation to... 22nd April 2021 · 3 mins read
Asset Allocation Update Biden’s tax reforms: further fuel for the rotation trade? If enacted, President Joe Biden’s corporate tax reforms could become a significant drag on US equities and hit the earnings of technology, pharmaceuticals and biotech companies particularly hard... 9th April 2021 · 5 mins read
Precious Metals Update Real yields and gold The recent drop in the price of gold below $1,700/oz. has illustrated its greater sensitivity to US long- than short-dated real yields. Although the price has nudged back up above this level at the... 31st March 2021 · 4 mins read
Asset Allocation Update Taking stock of our asset allocation views In light of a raft of recent forecast changes, this Update presents the latest returns projections of our Asset Allocation service for the next couple of years. We think six points are worth... 26th March 2021 · 4 mins read
Asset Allocation Update We doubt higher bond yields will derail DM equities We are sticking to our view that the US stock market will gain a bit more ground this year and next, despite revising up our end-2021 and end-2022 forecasts for the 10-year Treasury yield. We also... 24th March 2021 · 3 mins read
Asset Allocation Update US stock market unlikely to keep beating its economy While the stock market fared much better than the economy in the US overall during the past ten years, we do not expect that to remain the case. 17th March 2021 · 3 mins read
Asset Allocation Update Weighing up the prospects for further rotation Although we do not expect US bond yields to keep on climbing sharply, we nonetheless think that the recent “rotation” in the US stock market has further to run, given the upbeat prospects for the... 12th March 2021 · 4 mins read
Asset Allocation Update Inflation & equities: how much is too much? Too much inflation can spell trouble for equities if it results in tighter real monetary policy or slower growth. But while we expect inflation to pick up in the US, we do not expect either of those... 10th March 2021 · 3 mins read
Asset Allocation Update More thoughts on US equities, bonds and growth In the US, this week’s slide in equities in the face of a renewed rise in real government bond yields might seem puzzling, given the rosy prospects for the economy. But the argument that the stock... 5th March 2021 · 3 mins read
Asset Allocation Update Are REITs more at risk than equities from rising yields? We doubt that Treasury yields will continue to climb rapidly. However, that would be another reason to expect the returns from US REITs to fall short of those from ordinary US equities over the next... 25th February 2021 · 3 mins read
Asset Allocation Update Real yields, economic growth and the US stock market Although we forecast a further small rise in the 10-year Treasury yield this year, we doubt that this will upend the US stock market. 25th February 2021 · 3 mins read
Commodities Update We expect commodities to underperform US equities Although we expect oil prices to rise a bit further this year, we doubt that we are in the early phase of a new “super cycle” in commodities. In fact, we project that the returns from commodities will... 19th February 2021 · 4 mins read
Asset Allocation Update Toning down our optimism on US REITs While we still expect US Real Estate Investment Trusts (REITs) overall to fare reasonably well over the next couple of years, we no longer anticipate that they will outperform the US stock market. 5th February 2021 · 4 mins read