By Joseph V. Amato, President and Chief Investment Officer - Equities; Erik L. Knutzen, CFA, CAIA, Chief Investment Officer - Multi-Asset Class; and Brad Tank, Chief Investment Officer - Fixed Income
Post-election, AAC shifts bias toward U.S. equities.
In a special intra-quarter meeting to address the implications of the November 8 U.S. elections, the Asset Allocation Committee has shifted its bias toward U.S. equities and away from non-U.S. assets. Very early indications are that a Donald Trump presidency combined with a Republican congress may usher in a pro-growth, pro-inflation environment in which central banks play a less meaningful role in capital market performance and investors demand greater compensation for the risk they bear. That said, given the unconventional nature of the Trump campaign and the relative lack of visibility into his path forward, uncertainty rules the day.
Policy Implications Favor Equities over Bonds
While Donald Trump's victory was not the…