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 March 2022. Source: RLAM. For illustrative purposes only. Trails show monthly readings based on global growth and inflation indicators. Orange dot is the current reading. Faint trail represents a positive scenario for future readings taking the corona virus impact into account.
A volatile start to the year
Expectations of tighter global policy and rising geopolitical tensions led to volatile trading conditions over the first quarter of this year. Stock markets fell while commodities surged to fresh highs. Bond markets also moved lower, experiencing their worst quarterly performance since 1980. Our broader diversified approach helped in this environment.
The Investment Clock is in Stagflation
Growth is slowing and higher oil prices could be a further headwind from here. Meanwhile inflation is at multi decade highs, leaving the Investment Clock in Stagflation, a tricky stage of the cycle that favours commodities but little else. Volatility could remain high from here.
Navigating choppier waters
We believe broad diversification, active tactical asset allocation and volatility management will continue to be important tools in seeking inflation-beating returns and mitigating downside risk over the next few years.
Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount 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.