Relative Value & Tactical Asset Allocation Q2 2024

Relative Value & Tactical Asset Allocation Q2 2024

Jun Jiang Jason Chen
APR 04, 2024

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Key Takeaways

  • We continue to expect the United States to enter a modest recession in 2024.
  • We find valuations for UST, Bunds, and JGBs attractive relative to CGBs.
  • Credit cycle remains in a late stage with fundamentals resilient across US, European, and emerging markets.
  • Fundamentals of consumers and housing remain strong.
  • Commercial real estate fundamentals are generally stable outside the office sector, while the farm economy is expected to stabilize in 2024.
  • We continue to remain underweight corporate equity and overweight cash investments from a relative value perspective.