Investment Clock position

As at April 2025. Trail shows monthly readings based on global growth and inflation indicators. Yellow dot is the current reading.

Source: Royal London Asset Management. For illustrative purposes only.

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April 2025

No such thing as passive in multi asset

This is the time for active management. We review our strategic asset mix regularly to maximise growth for a given level of risk, diversifying across real assets, inflation hedges and 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.

Underweight stocks on elevated uncertainty

Recent tariff announcements from US President Trump have seen recession fears rise globally, with business and consumer confidence already challenged going into the event. We are currently underweight global equities, having reduced risk across the portfolio over the last month. Within regions, we remain underweight the relatively expensive US market and prefer the more defensive UK shares.

Commodities hedge against unexpected inflation

We believe the pandemic ushered in a new regime of “spikeflation” characterised by periodic price level shocks and shorter boom-bust cycles. A global trade war reminiscent of the 1930s could raise the cost of imports the world over and challenge the low inflation consensus. It’s not beyond the realms of possibility that the Tariff Crisis ends up like Covid – a short-term deflationary panic that gives ways to an inflationary recovery.

The views expressed are the author’s own and do not constitute investment advice.
Source: Royal London Asset Management as at April 2025.

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