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

Historically, layoffs and jobless claims have provided a reliable real-time signal of earnings stress. Despite heightened layoff announcements, jobless claims indicate earnings pressure remains contained.

Allocation Update

International Equities Monthly

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

A weaker dollar amplified strong, broad-based gains across international equities in 2025, with both developed and emerging markets delivering standout returns and renewed diversification benefits for U.S. investors.

Allocation Update

Touchstone Asset Allocation Guidance

Touchstone Asset Allocation Committee

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

Domestic Equity Monthly

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

In this issue, we examine 2025 market performance and uncover sharp internal divergence beneath the headline gains.

Allocation Update