Tactical Investment Strategy, June 2021

June 9, 2021 — We continue to see further upside for risk assets in the second half of 2021. Our base case includes strong growth driven by a continued reopening of the global economy, a healthy consumer, and favorable policy that will push equities higher and keep spreads stable. We expect the Fed to remain patient and carefully prep markets for a gradual tapering process by year-end. Inflation and higher rates will remain possible headwinds, but inflation concerns have receded somewhat, and inflation readings in the second half will be coming off a higher base and appear less threatening. Beyond rates and inflation, we would add tax concerns and valuations as the other primary risks for the back half. Fears of higher corporate taxes may weigh on mega-cap growth/tech-oriented companies, which feeds into our preference for value.

Featured Insights

Fixed Income

Negative Yields? A Tsunami of Liquidity is Pressuring the Cash Investor

The wave of cash flooding into bank deposits and money market funds is threatening to test the line in the sand between zero and negative yields. What are the alternatives . . .

Learn more >

ESG Solutions

A Sustainable Trend: Taking Stock of ESG Performance and Flows

ESG investing evolved from niche to mainstream, and it has become one of the fastest growing areas in investment management over the past two years.

Learn more >

Tactical ETF

Tactical Positioning – Stick with the “Three Rs”

While growth, earnings, and liquidity conditions are expected to remain highly supportive to risk assets, given strong returns this year and stretched valuations, some . . .

Learn more >