Tactical Investment Strategy — June 2024

June 25, 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

• Heading into the second half we believe investors should be thinking about the two D’s – duration on the fixed income side and diversification on the equity side.
• Key forward dynamics are very supportive of overall core returns and duration, but positioning within fixed income should be conservative, as overall yields are high, but spreads are tight – so the risk/reward is not favorable to “reach for yield.”
• Optimism for future cuts is supportive to risk assets but will come with increased recession odds, which will eventually have to be priced back in. Additionally, the ingredients for a risk-off correction are on the table – rising political angst, full valuations, and stretched technicals.