Counterpoint

The macro backdrop is turning more supportive, even as geopolitical risks persist. Cyclical and structural forces, from monetary and fiscal stimulus to AI investment and a more multi-polar world, are reshaping markets.

The final stretch of the year is always a good time to pause and reflect. What’s gone as expected? What’s surprised us? And what does that mean for portfolio positioning?

As investors return from summer break, we’re seeing renewed market momentum. Liquidity is improving and, despite some volatility and mixed headlines, sentiment remains cautiously optimistic.

A widening US budget deficit and rising debt pose risks to Treasuries. We’ve reduced our exposure and reallocated proceeds to Japanese government bonds and US equities.

We’re selling a number of U.S. stocks and partially reinvesting in low-volatility equities from developed markets. We’ve also broadened the diversification within the portfolios.