December 16, 2025

Asset Allocation Insights - December 2025

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Quarterly report

Rewired global economy shows resilience, with continuing tailwinds for international assets. Gold, All World ex US Equity and High Yield top in risk-adjusted returns.

Key highlights:

  • Global growth and trade remain resilient with deep structural shifts underneath
  • Wind in the sails for Developed ex US equities
  • US dual speed economy: disconnect between equity and the economy
  • Healthy fixed income yields even as credit spreads remain tight
  • Emerging markets a structural change story now showing in financial returns
  • USD weakness against other DM currencies; dollar pressured by policy uncertainty
  • Decorrelation, dispersion, and cross-asset returns – payoffs to granular exposure

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 LSEG and Lipper fund flows data – enabling apples-to-apples comparisons across asset classes and global markets

To support your investment decision-making, we produce specialist content that provides analysis and insights on a range of investment topics. Go to our hub for valuable Market Insights.

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22 January

Global financial markets outlook

Presented by Indrani De, CFA, PRM, Head of Global Investment Research and David McNay, CFA, Director, Global Investment Research, FTSE Russell

14 January

Fixed Income Insights (Global)

Presented by Robin Marshall, M.A., M.Phil, Director, Global Investment Research and Belle Chang, MBA, Senior Manager, Global Investment Research, FTSE Russell