In this section you'll find the latest Investment Clock views and positioning, Investment Clock insights and blogs, and a library of economic updates from the multi asset team.
Investment clock positioning
As at July 2021. Source: RLAM. For illustrative purposes only. Trail shows monthly readings based on global growth and inflation indicators. Orange dot is the current reading.
Further to run in the pro-cyclical recovery
Stocks and commodities continue to advance as vaccination programmes continue. Policy remains supportive while social distancing measures are eased further and the world returns to normality. We expect risk assets have further to go, cyclical assets should lead this rally as the re-opening rally continues.
Goldilocks or choppy summer?
We hold a small overweight in stocks. Peaking of nominal growth has been seen as ‘goldilocks’ with reopening allowing solid growth without causing tightening fears. However, we are in the seasonally worse period for stocks and fears over tapering or Covid resurgence may spark a sell off.
Diversify broadly for a more inflationary future
Our asset mix, with higher exposure to UK real assets, has performed well this year as cyclical assets have led this year’s reopening rally. We expect this trend to continue in a more inflationary post-Covid recovery.