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 October 2021. Source: RLAM. For illustrative purposes only. Trail shows monthly readings based on global growth and inflation indicators. Orange dot is the current reading.
Investment Clock moves into Stagflation
Growth has surged this year as the global reopening has seen activity levels return to pre-crisis levels. However, the acceleration has now slowed while inflation remains elevated. This has seen our Investment Clock move into the Stagflation phase.
The strong stock rally may be out of steam
Stocks have come off their highs over recent weeks on the softening of global data and a move towards tightening (or 'tapering' QE) by central banks. However, policy is loose globally and we expect the less interest-rate sensitive parts of the market to continue to make progress into 2022.
Diversify broadly for a more inflationary future
Our asset mix, with its higher exposure to UK equities, property and commodities has performed well this year in comparison to a simple balanced fund. We expect this resilience to continue in a more inflationary post-Covid recovery.
Past performance is not a reliable indicator of future results. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.