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

When geopolitical headlines dominate the news cycle, the biggest risk for investors may be behavioral biases, not fundamentals.

Allocation Update

International Equities Monthly

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

Geopolitical tensions have introduced a new source of volatility, prompting a shift to a slight underweight in emerging markets.

Allocation Update

Touchstone Asset Allocation Guidance

Touchstone Asset Allocation Committee

We made a number of asset allocation changes in March in response to rising geopolitical tensions. We extended duration and tilted toward U.S. equities by adding to large cap Growth and reducing emerging market exposure.

Allocation Update

Domestic Equity Monthly

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

Markets have come under pressure as geopolitical risks reintroduce inflation concerns into a slower economy. While risks have increased, we continue to view the U.S. expansion as intact. In response to improving earnings trends and valuation resets, we have moved back to a neutral stance on large cap growth.

Allocation Update