In February, the overall picture at financial markets was positive, but beneath the surface there were signs of volatility and return dispersion. However, these developments didn’t lead to many changes in our Money Talks Money Walks model yet…
Financial markets largely extended the prevailing 2025 trend last month…but our Money Talks Money Walks model has changed its recommendation on real estate and commodities while within fixed income, corporate bonds received a model downgrade.
The Venezuela shock, Greenland threat, and the criminal investigation into Fed-chair Powell creates ample ammunition to reconsider the tactical asset allocation. However, our Money Talks Money Walks model advocates staying the course.
The risk-on climate continues and this is reflected in our Money Talks Money Walks model recommendations. Still, the model changes the allocation to four categories; commodities, Japan equity, Pacific ex Japan equity and communication services.
