Momentum gathering…

These last few weeks, marking the beginning of Summer holidays in the Northern Hemisphere, have seen several significant macro and geopolitical events that serve to reinforce to us, as investors, the importance of being active in our capital allocation to prepare, protect, and capitalise on potential price step changes.

We do not see these events as short-term noise, but as real signals that global asset allocators will, and are already, recognising and recalibrating portfolio positions.

If you subscribe to longer-term, strategic portfolio asset allocation frameworks. We do. Then, the global bond performance of recent years, and more importantly, their increasing risks and outlook, should prompt you to at least seriously consider the shifts beneath the surface that impact the traditional 60/40 asset allocations.

The four, not mutually exclusive, ingredients we focus on to summarise those risk cocktails are: