Strategic Asset Allocation

On this inauguration day we present the Strategic Asset Allocation, based on the latest update on the consensus expected returns and with some remarkable changes compared to the SAA in Q1 2024. 

In this month’s SAA Special, we uncover the historically high US equity market concentration and valuation levels, which implies below average returns over the next decade. In addition, we explain the importance of choosing the right equity benchmark, and the way expected returns are calculated, to avoid allocating too much to US (cap weighted / tech heavy) equity indices in the strategic asset allocation.

The Dutch central bank warned this week of a new era full of international tensions, fragmentation and bloc formation. Trump 2.0 is unlikely to make things better. In this special, we look at the interaction between (geo)politics, economics and markets through four lenses. From this, three scenarios for globalization follow, accompanied by the consequences for different asset markets.