U.S. Equities
U.S. Fixed Income
Non-U.S. Equities
Alternatives
Currency
Private Markets
Slightly Positive
Neutral
Slightly Negative
Negative
Positive
U.S. Large-Cap Equities
U.S. Small-Cap Equities
U.S. Treasuries
U.S. Corporate Bonds
European Equities
U.K. Equities
Asia-Pacific Equities
Emerging Market Equities
Real Estate / Infrastructure
U.S. Dollar
Private Equity
Private Credit
U.S. Large-Cap Equities
Earnings growth has been very strong in recent quarters. Valuations remain on the expensive side of the ledger, while sentiment is neutral.
U.S. Small-Cap Equities
Positive backdrop with robust earnings growth and relatively attractive valuations. Higher interest rates and a protracted Middle East conflict are risks.
U.S. Treasuries
Government bonds have repriced amid the Middle Easte conflict. We see valuations close to fair, while the 2 year yield looks attractive.
U.S. Corporate Bonds
Whilst corporate fundamentals are healthy, credit spreads do not currently offer sufficient compensation.
Private Credit
Senior secured and asset-based lending are preferred given elevated base cash rates. We see compelling opportunities in European direct lending.
Private Equity
We see growing potential opportunties in non-US markets, including Japan, Asia-ex China and the Middle East. At the sector level, defense and defense tech have been an area of focus.
U.S. Dollar
The near-term path has become less certain given the geopolitical tensions. Over the medium term, we expect a return to depreciation given the expensive valuation.
Real Estate / Infrastructure
Infrastructure could serve as a useful defensive cushion amid geopolitical shocks. Valuations of real assets are more attractive than equities, but face headwinds when compared with bonds.
Emerging Market Equities
Strong earnings growth and attractive relative valuations present a compelling opportunity, while further downside in the US dollar would be a further positive.
Asia-Pacific Equities
Japanese equities present a compelling opportunity given a positive economic backdrop and corporate governance reforms leading to improved return on equity. Australian equities look fully priced.
U.K. Equities
The economic environment in the United Kingdom remains very challenging, but equity valuations appear to have priced in a lot of that bad news. Higher energy exposure is a positive should the Middle East conflict lengthen.
European Equities
Elevated energy prices have put a relative dent in the growth trajectory in the near term; however, we continue to see solid earnings growth.
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
NEUTRAL
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
NEUTRAL
SLIGHTLY POSITIVE
SLIGHTLY POSITIVE
NEUTRAL
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
SLIGHTLY POSITIVE