Adding bonds, trimming risk

State Street Investment Management’s Keith Snell and Robert Spencer outline a more defensive tactical allocation as resilient growth is balanced against higher rates and uneven inflation progress.

• The team reduced equity risk while increasing exposure to aggregate bonds, moving high yield from neutral to underweight.
• Growth remains positive but increasingly concentrated in AI and technology investment, while housing and other rate-sensitive areas face pressure.
• Europe gained relative appeal on valuations and profitability, while health care and communication services remain preferred sectors.

Explore the full report for State Street’s latest tactical allocation shifts across equities and fixed income.