Tactical Investment Strategy August 2019

Until the next FOMC meeting in mid-September, markets are most likely to be influenced by trade news and economic data, which have both generated negative headlines recently. Coupled with the fact that we are entering what is typically a weak seasonal period for risk markets, we are expecting a choppy late summer with increased downside risks. To this end, we have become modestly more defensive across our allocations. Within equities, we pared our EM exposure, remain underweight developed international regions, and have shifted some U.S. exposure toward more defensive and interest rate-sensitive sectors. In our multi-asset income strategies, we lowered equities and non-core fixed income and increased our overall duration. Within fixed income, we continue to pursue a yield carry strategy, with a spread sector overweight, but a longer duration to help protect against bouts of spread widening.

  • DATE: August 12, 2019
  • TYPE: PDF

Featured Insights

Tactical ETF

Tactical Investment Strategy July 2019

The main macro story for the second quarter has been that the Fed and the other major central banks have turned dovish in the face of a weakening global economy and trade . . .

Learn more >

Fixed Income

Fixed Income Perspectives July 2019

This presentation provides insight into our fixed income outlook and illustrates how Sage is positioned in the current environment.

Learn more >

Fixed IncomeTactical ETF

Sage Advice Tactical ETF Quarterly Market Review 2Q2019

Going into the third quarter, the backdrop for equities appears tilted moderately positive for investors, with growth trends slowing, but recessionary concerns still on . . .

Learn more >