The Venezuela shock, Greenland threat, and the criminal investigation into Fed-chair Powell creates ample ammunition to reconsider the tactical asset allocation. However, our Money Talks Money Walks model advocates staying the course.
The risk-on climate continues and this is reflected in our Money Talks Money Walks model recommendations. Still, the model changes the allocation to four categories; commodities, Japan equity, Pacific ex Japan equity and communication services.
A resilient risk-on sentiment continued to drive markets in October. The equities, real estate, and commodities categories are supported by improving fund flows and steady positive trends. Our three-pillar model highlights renewed strength in real estate and utilities, while consensus on bonds remains cautious despite solid inflows. Discover where institutional conviction is building — and where sentiment is starting to shift.
Overall, our Money Talks Money Walks model maintains its risk-on stance. However, there are some changes in September, notably in the model recommendations for government bonds and Japanese equities.
