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

This month we look back on 2025—a year that defied forecasts with resilient growth, sticky inflation, and surprising strength across rates and credit markets.

Allocation Update

Asset Allocation Chart of the Month

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

This month, we look at potential headwinds in 2026. Given its importance to our economy and the market, we see AI as holding the biggest risk, but this risk can cut both ways. Most investors instinctively associate risk with falling prices rather than rising ones. Yet, rising prices tend to be the biggest risk for longer-term investors, as fears of losing money can lead to underinvestment at times.

Allocation Update

International Equities Monthly

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

In this month’s piece, we look into Japan’s rising interest rates and whether they spell trouble ahead for the carry trade (spoiler: we don’t think so). We continue to see international equities as an important diversifier for U.S. investors.

Allocation Update

Touchstone Asset Allocation Guidance

Touchstone Asset Allocation Committee

Allocation Update

Domestic Equity Monthly

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

The 3Q earnings season has been one of the strongest seen in years, with widespread beats on both revenue and earnings. Yet, stock reactions have been muted. Part of this likely reflects the strong rally that preceded earnings, but investors may also be shifting their focus toward 2026, introducing some added uncertainty. In addition, some are beginning to reassess the AI narrative. We view this as a healthy development, not a cause for concern.

Allocation Update