Allocation Update

Find timely intelligence to inform your portfolio positioning right now. Touchstone conducts deep dive analyses of specific asset classes and offers asset allocation guidance using different approaches that are designed to add value for financial professionals and their clients. While certainly not exhaustive, these fresh perspectives include not only historically significant findings, but they also incorporate more recent trends or ideas about important market or economic environments - the culmination of which can serve as a solid framework for discussion and consideration.

Fixed Income Monthly

Crit Thomas, CFA, CAIA, Erik M. Aarts, CIMA, Tim Paulin, CFA

Fed Independence Risk: Direct political pressure on the Fed—demanding lower rates and replacing Governors with loyalists—erodes the central bank’s independence. Such moves damage credibility, risk policy mistakes, and could push inflation higher, potentially raising borrowing costs and hurting mortgage borrowers. History shows that once lost, credibility takes decades to rebuild.

Allocation Update

Asset Allocation Chart of the Month

Crit Thomas, CFA, CAIA, Erik M. Aarts, CIMA, Tim Paulin, CFA

We believe the backdrop for small caps warrants consideration for investors who are looking for diversification and potential outperformance.

Allocation Update

International Equities Monthly

Crit Thomas, CFA, CAIA, Erik M. Aarts, CIMA, Tim Paulin, CFA

As we see them, the fundamentals point to longer-term vulnerability for the dollar – supporting the case for U.S.-based investors to have strategic allocations in international equities.

Allocation Update

Touchstone Asset Allocation Guidance

Touchstone Asset Allocation Committee

We believe we can add value by adjusting portfolio weights in response to changing market conditions and in anticipation of changing fundamentals. History demonstrates that risk assets move through repeated boom and bust cycles. While the economic cycle influences these cycles, they do not necessarily overlap with the risk asset cycle.

Allocation Update

Domestic Equity Monthly

Crit Thomas, CFA, CAIA, Erik M. Aarts, CIMA, Tim Paulin, CFA

We see near-term risks for the market, though absent a recession, we don’t see conditions for a bear market. And looking towards 2026, we see several positives that temper the downside case.

Allocation Update