December 18, 2023

Asset Allocation Insights - December 2023

Quarterly report

Fed pivot and disinflation lift markets but higher dispersion of returns may continue. Central bank caution, recession and valuation risks remain

Key highlights:

  • Disinflation and Fed pivot provides tailwinds
  • Dispersion is trending higher. Global ex-US equities doing well
  • Duration gains appeal. Valuation favors Treasuries and Euro bonds
  • Recession and downside risks remain in the next 6-9 months
  • Alternate asset classes remain attractive
  • Diversification remains key

Published quarterly, this report covers:

  • Key macroeconomic influences and their implications for financial markets
  • Core drivers across asset classes – and what they are indicating
  • Cross-asset analysis – expectations, risk premiums, return and risk, correlations and more · Implications for asset allocation and portfolio construction
  • Market analysis provided exclusively via our indices, and Refinitiv and Lipper flows data – enabling apples-to-apples comparisons across asset classes and global markets

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