Strategic Asset Allocation

The U.S. is entangled in an implicit currency union with Asia, with mounting economic drawbacks. Trump's push to address this is constrained by China's control over the USD/CNY exchange rate, and his limited tools are creating their own economic fallout. Meanwhile, China faces growing incentives to revalue the yuan, increasing pressure for a free-floating USD/CNY. How will this seismic shift reshape financial markets over the next decade?

If Trump 2.0 initially succeeds for his base, will Trumpism dominate global politics over the next decade? Or, if it stumbles, will the world swing left or rediscover global trade and cooperation?

Strategic Asset Allocation (SAA) plays a crucial role in an investors’ decision-making process. This report features the quarterly update of three SAA models, their portfolio characteristics and the data we have used to construct the SAA models. In addition, we update the Expected Returns based on the return assumptions of approx. 70 asset managers and present tables with volatility and correlation data for every asset class.