Tactical ETF 3Q22 Market Review & Outlook

October 5, 2022 — While the Fed has made it clear that its priority is inflation, our base case is that weaker growth trends, global risk factors, and peaking inflation will allow the Fed to pause by year-end in the 4.25% to 4.5% range. From an asset allocation perspective, conditions are not favorable for risk assets or fixed income heading into the final quarter. As such, we remain overall defensive on rates and light on credit, and in equities, we’re overweight the US and tilted toward more high-quality market segments.