Capital allocation and portfolio construction in the new macro era

What kind of portfolio can withstand current volatile conditions?

Goldman’s recent reverse in its prediction from a recession to no recession within 73 minutes is emblematic of the level to which uncertainty weights on markets. The insights listed below will help allocators navigate the current tumult. 

Diversification and Asset Allocation in the Post-COVID Era (PMR)

Diversification is the financial embodiment of the age-old injunction to not to put all of one’s eggs in one basket.

Relative Value & Tactical Asset Allocation – Q2 2025 (MetLife IM)

For compliance reasons, this paper is only accessible in certain geographies

This report touches on a number of key market and economic developments that are shaping asset allocation decisions.

The Wind of Change (Candriam)

Long-Short Equity strategies with a growth tilt have lagged due to the underperformance of their long positions versus shorts.

Making Diversification Great Again (UBS AM)

While the market environment has become trickier, the benefits of diversification have grown as cross-asset and regional correlations have declined.

Asset Allocation & Global Fixed Income Markets (Invesco)

For compliance reasons, this paper is only accessible in certain geographies

Global fixed income investors must navigate an increasingly uncertain macroeconomic development. Where can investors allocate to fixed income?

Beyond 60/40: Private Assets in an Era of High Public Valuations (Apollo)

The S&P 500 rose more than 20% in both 2023 and 2024. This performance has, in recent weeks, been lost due to volatility caused by U.S. trade policies.

EM Sovereign Bond Allocation with Macro Risk Scores (Macrosynergy Research)

Macro risk premium scores are an easy and intuitive way to track disparities between market-implied credit risk and related risk fundamentals.

Managing Risk Exposures to Private Equity through Public Equity (FTSE Russell)

For compliance reasons, this paper is only accessible in certain geographies

FTSE Russell and CBOE analyze public and private equity performance and find that Russell 2000 options can be used to hedge private equity risk exposures.

Enhancing Portfolio Resilience in Today's Macro Environment (Franklin Templeton)

For compliance reasons, this paper is only accessible in certain geographies

Given the recent weeks (and indeed, the recent months), there are a multitude of reasons why investors feel vulnerable. Here is how to bolster your portfolio.

Tactical Asset Allocation with Macroeconomic Regime Detection

This paper extends the tactical asset allocation literature by incorporating regime modeling using techniques from machine learning.

Smart Money Continues to Like Private Debt and Private Equity (Cliffwater)

Most allocators direct monies to asset classes based upon long-term expected returns, risk, and correlations.

Traditional Asset Allocation with Digital Assets (Wilshire Indexes)

A key question answered by this paper is: What is a reasonable candidate to replace the traditional asset allocation approach?