Tactical change – 07 September 2023

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, has made a tactical change to the asset allocation of the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs).

What’s changing?

Whilst US labour markets have been softening over recent weeks, this rise in the unemployment rate has actually come despite any significant job losses. This could result in a cooling of inflation without deep global recessions. We remain overweight stocks for the time being, but recession risks remain and we stand ready to move back to more defensive when required. Furthermore, we have added to commodities, as improved energy demand from China and low supply have supported the asset class. We have increased the size of our underweight in bonds, as disinflationary forces continue to unwind.

Keep up to date with Trevor’s latest views

You can access up to date views from Trevor on the market and the movements of the Investment Clock on our Latest Investment Clock updates page.