Mid‑Cycle Investing: Time to Get Selective

We Believe

  • The global economy is in a mid-cycle expansion, following peaks in policy support and growth, and what is likely a transitory spike in inflation. We expect global growth to moderate to a still above-trend pace in 2022.
  • Growth-oriented assets, such as equities and credit, tend to perform well in a mid-cycle environment, but with significant differentiation. Sector and security selection remain crucial. Within multi-asset portfolios, we generally prefer equities over other risk assets based on relative valuations.
  • Looking beyond the business cycle, we also assess the potential impact of longer-term disruptions. Trends toward sustainability and evolutions in technology present investment opportunities as well as risks.

Asset Allocation Views

Download our investor handout to learn about how we are positioning portfolios across global asset classes.


Asset Allocation Outlook handout cover