Asset allocations: Reduce exposure to risky assets
Change from previous quarter
|U.S. large cap
|U.S. small cap
|Non-U.S. developed country
|Investment grade / High yield / Floating rate
|Residential mortgage credit
|Commercial mortgage credit
Currency viewsU.S. dollar versus
Remain underweight to equity risk
Stocks remain unattractive as monetary policy has recently become the most restrictive since mid-2007.
Government bonds offer more attractive yields
With government bond yields now close to the return potential of stocks, duration may be an attractive strategy to hedge against an economic slowdown.
Neutral on commodities
Recent increases in oil prices do not change the overall outlook.