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

Rates Rise, Ballast Role Intact: In a counter-intuitive move, Treasury yields rose sharply following the escalation in the Middle East, as markets priced higher oil and fewer near-term Fed cuts. While energy spikes may lift headline inflation temporarily, we do not see sustained pass-through into core prices. Despite the backup in yields, high-quality fixed income continues to serve as portfolio ballast and could benefit if growth expectations soften or risk sentiment deteriorates.

Allocation Update

Asset Allocation Chart of the Month

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

For many taxable investors, investment-grade municipal bonds can be a compelling way to pursue tax-efficient income with a historically strong credit backdrop.

Allocation Update

International Equities Monthly

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

International equities are navigating geopolitical volatility and currency crosscurrents, but improving breadth, supportive valuations, and structural growth opportunities continue to strengthen the case for global diversification.

Allocation Update

Touchstone Asset Allocation Guidance

Touchstone Asset Allocation Committee

Markets are navigating an unusual mix of geopolitical risk, rising yields, and shifting AI leadership. While higher oil prices have lifted inflation concerns, we believe growth risks may ultimately prove more important. Against this backdrop, we are leaning slightly longer in duration, staying selective in U.S. equities, and maintaining balanced global exposure.

Allocation Update

Domestic Equity Monthly

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

Equity markets entered 2026 with fundamentals largely intact, but leadership has become more fluid, and valuations possibly more constraining for large caps, raising the importance of selectivity over broad exposure.

Allocation Update