In this months’ Tactical Asset Allocation report we explore whether AI related stocks are forming a bubble, the crucial role long-term rates are playing  and what this means for the stock market outlook and tactical asset allocation in general. We also discuss three alternative scenarios to our base case.

The Fed is expected to cut interest rates this week, signaling more cuts to come, leading to a drop in US long-term rates. However, this could unexpectedly push rates higher in the US and Europe. This report explains why and what companies and investors should consider.

The US is retreating from the global economic order it once built and safeguarded — the foundation on which growth and asset prices thrived. Looking ahead, this prosperity is under pressure from slower population growth, rising geopolitical risks, and increasing regulatory uncertainty. At the strategic asset allocation level: which asset classes should be avoided, and which stand to benefit?