You are using an outdated browser. Please upgrade your browser to improve your experience.


 

Investment Clock

In this section you'll find the latest Investment Clock positioning, plus insights from across the Multi Asset team.

Investment Clock position

As at October 2024. Trail shows monthly readings based on global growth and inflation indicators. Yellow dot is the current reading.

Investment clock graphic 10 2024.jpg

 

Source: RLAM. For illustrative purposes only.

The Investment Clock is updated by the Multi Asset team on a regular basis. To find out more about the concept and premise behind the Investment Clock, visit our Mult Asset capability page.

Investment Clock commentary

October 2024

No such thing as passive in multi asset

Our strategic asset mix aims to maximise growth for a given level of risk by diversifying across real assets, inflation hedges and more defensive fixed income and cash holdings. We seek to add value on a day to day basis through tactical asset allocation and active security selection.

Disinflationary trends may not last long

In our view, the pandemic ushered in a regime that will be characterised by periodic spikes in inflation and shorter boom-bust cycles. Stronger than expected US growth and trouble in the middle east could challenge the consensus view that inflation will drop quickly to target levels.

Adding back to risk assets

Our funds benefitted from an overweight in equities since 2022 as the world economy proved much more resilient than expected to higher interest rates. Having taken profits into the summer, as our Investment Clock moved further into the bond friendly Reflation quadrant, we have been adding back exposure to risk assets over recent weeks. With equity market seasonality now turning more positive and central bank rate cuts expected to boost global activity, we are cautiously optimistic.

Commentary as at October 2024. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.