Multi-asset investing: focus on volatility, liquidity and agility

A flexible approach is key to deal with a more uncertain world: The increased influence of politics in economic matters and elevated geo (political) risks made it particularly necessary this year to embrace an agile asset allocation approach to benefit from the opportunities that phases of volatility can offer to investors. After starting the year with a cautious stance, we became more constructive on risk assets in January. We then scaled back risk in May amid an increase in uncertainty on the trade front. We are now entering a phase of economic slowdown at a time of very supportive central bank policies that suggests an approach of tactically seeking opportunities in some risk assets while maintaining a strong focus on hedging against possible deterioration of the overall outlook.

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