Tactical Investment Strategy — October 2024

October 21, 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

• The third quarter delivered strong returns in both equities and fixed income as building optimism around easing expectations and the start to Fed easing helped both asset classes.
• The continued slowdown and a desire to migrate from overly restrictive rates should keep the Fed and global central banks easing well into 2025. This creates a favorable backdrop for both equity and fixed income returns, but valuations in both asset classes (long yields, credit spreads, equity multiples) are at unforgiving levels, and returns are likely to come with more volatility.
• For our multi-asset strategies, we believe it makes sense to carry a full allocation to equites, with a full beta within equities, and to balance this with increased duration in the fixed income allocation with a greater emphasis on diversification.