January 2024 Asset Allocation Update For Risk-Managed Portfolios
Adjustments can vary across strategies depending on each strategy's objectives. What's illustrated above most closely reflects allocation adjustments for the Growth Strategy.
U.S. Equities
International Equities
Exposure will increase but remain underweight. Both foreign developed and emerging market equities now have intermediate-term uptrends, with the former also gaining a long-term uptrend. The relative weakness of international equities versus U.S. will subdue allocation increases to minor adjustments.
Real Estate
Exposure will increase and return to baseline status as the long-term trend joins the intermediate-term trend in positive territory.
U.S. & International Treasuries
Exposure will increase and return to baseline allocation, as some long-term trends in the asset class have become positive. The relative strength of nominal bonds versus inflation-indexed bonds will continue to boost the allocation, pushing it to baseline despite having some long-term downtrends.
Inflation-Protected Bonds
The intermediate-term trend has switched from declining to increasing, but the relative weakness of the asset class versus nominal Treasuries will keep exposure at its minimum.
Alternatives
Exposure will not change, as trends in gold remain positive across both timeframes.
Short-Term Fixed Income
Exposure will continue to decrease to its minimum as higher-duration fixed income instruments strengthen.
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