Capital Markets Outlook  |  Q4 2021

Asset Allocations: We have reduced risk and adopted a tactically neutral posture.

  Current quarter
  Previous quarter
    Change from previous quarter
Underweight Neutral Overweight
U.S. large cap
U.S. small cap
U.S. value
U.S. growth
Emerging markets
Fixed income
U.S. government
U.S. investment-grade corporates
U.S. mortgage-backed
U.S. floating-rate bank loans
U.S. high yield
Non-U.S. developed country
Emerging markets

Currency views

U.S. dollar versus
Favor other Neutral Favor dollar

Neutral on equities

We have pushed pause on risk taking and moved to underweight in large caps and U.S. growth stocks, and to neutral in emerging markets.

Reducing high yield to neutral

Levels of volatility do not adequately compensate for uncertainty.

Commodities back to neutral

Stress on global supply chains is causing price swings in key commodity markets.

At the crossroads of pandemic, policy, disruption, and inflation

October 15, 2021  |  Capital Markets Outlook

Strains on supply chains, rising prices, slowing growth, and shifting policies have pushed up volatility and changed our tactical stance.

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