Quantitative Asset Allocation

Despite the ongoing military conflict in the Middle East, elevated oil and gas prices and rising bond yields, equity markets held on to their positive mood in August, with global earnings growth accelerating. Our Money Talks Money Walks model kept its overall asset allocation recommendations unchanged, with equities and commodities retaining strong overweight convictions. Within equities, however, we see a notable shift in regional and sector preferences.

Renewed US-Iran tensions pushed Brent oil to $100 in July, which, combined with growing doubts about the sustainability of the AI investment boom, caused a moderate set-back in financial markets. Our Money Talks Money Walks model kept its asset allocation recommendations unchanged. However, within the asset categories there were some notable changes, especially within equity regions and equity sectors.

Falling oil prices and higher earnings estimates have supported the markets last month. Our Money Talks Money Walks model kept its asset allocation recommendations unchanged. However, within the asset categories there were some notable changes, especially within equity sectors and equity regions.