The Dynamic Allocation Strategy did not trade this month.

Two-thirds of the six top-level indicators in the model favor equities over fixed income.

U.S. Large-Caps, non-U.S. Developed, U.S. Investment Grade, U.S. High Yield, and U.S. Value received the highest allocations. Click the link below to read more about the strategy’s positioning.

Full strategy commentary: NDRDAS202305021

Other posts

Thoughts From The Divide: The Right Time to Strike

BY JON WEBB
The saying is that one should wait until you see the whites of the enemy’s eyes before firing, but are there times when it’s worth waiting until you feel their breath? Case in point, the “whites” (losses) are certainly visible now in real estate debt, as we’ve highlighted in these pages, with the obvious consequences for owners of real estate debt. The latest data from the FDIC served to further highlight the obvious, warning that there are “63 ‘problem banks’ and $517 billion in unrealized losses” courtesy of higher rates hurting bank holdings of fixed income. Read more →

Thoughts From The Divide: An Inevitable Recession? –Surprise! (An Interview)

BY JON WEBB
In lieu of this week’s Thoughts From The Divide newsletter, we’re thrilled to share Julian Brigden’s recent chat with Blockworks’ Felix Jauvin. So, what’s on the docket? Well, we dive headfirst into the market’s somewhat naive hope that central banks will start slashing rates like they're on a budget cut spree. Spoiler alert: historical trends suggest that rate adjustments are rarely as swift or predictable as we'd all like. Those tightening cycles? They’re like that unpredictable friend who shows up late and drunk—potentially disastrous. Next up, we take a magnifying glass to those overly rosy 2025 pricing forecasts. Turns out, the market's optimism might be a tad misplaced. We break down the difference between disinflation that’s deliberately crafted and the kind that just happens because, well, life. Either way, it’s a wild ride with plenty of risks to consider. Read more →

USDJPY: Update and Strategy Observation

BY JON WEBB
As USDJPY probes back towards the lows of its “liftshaft” experience in early August, longer dated implied volatility is on the rise and skew favours puts over calls even more than before. Read more →
Back to all posts →