All Weather Strategy

All Weather Strategy: Though down by 1.0% for the month, AWS beat a traditional 60/40 portfolio by 1.6%. Fed/ECB unwillingness to taper could drive equities higher. Commodities driven by energy crisis and supply-chain disruption. Risks: Inflation turns out transitory, new lockdowns, US default, slow growth in Germany.

All Weather Strategy: The strategy outperformed the traditional 60/40 portfolio in the past three months. Central banks let recovering Western economies run hot. Commodities to benefit from Western and Chinese recovery. We keep our target allocations unchanged.

All Weather Strategy: The strategy outperformed a traditional 60/40 portfolio by 0.9% in July 2021. Reopening of Western economies should drive these equities, and we expect strong commodities demand from Western and Chinese recovery. Risks: Inflation turns out transitory, new government-mandated shutdowns.

All Weather Strategy: The All Weather Strategy slightly underperformed a traditional 60/40 portfolio in June 2021. Western economies continue to reopen, and we tilt our 65% target equity allocation to US and Developed Europe. Expect strong commodities demand from Western and Chinese recovery; target allocation at 25%.

All Weather Strategy: The All Weather Strategy came in slightly below the traditional 60/40 portfolio in the past three months. Stimulus and vaccine news to drive the US and Developed Europe equity, together with China, the recovery should drive commodities. We switch into Developed markets equity but stay with our target weights for the various asset classes.

All Weather Strategy: The All Weather Strategy underperformed World equity slightly in April. Rising COVID-19 cases and slower vaccine rollout could delay recovery in Asia and Emerging markets. Our equity target allocation is at 65% and commodities at 25%.