Tactical Investment Strategy — April 2024

April 18, 2024 — Tactical Investment Strategy provides an overview of key economic and policy themes and how Sage is tactically positioned in the current market environment.

Key Takeaways

• Optimism toward the growth outlook may continue to put upward pressure on rates in the near-term; however, we believe it would be premature to price cuts out of 2024.
• We prefer to lean into the medium-term outlook for rates (down) rather than try to time a repricing, and thus carry full durations across fixed income strategies into Q2. Our sector allocation in fixed income is geared toward generating income with a bias to MBS, short duration credit, and a small allocation to non-core exposure in the form of high yield and EM debt.
• To balance an outlook of underlying support with building headwinds, we have increased diversification within our equity allocation, expanded our focus on quality and attractive free cash flow-oriented names, and trimmed our US overweight.