Investment Clock position

As at March 2025. Trail shows monthly readings based on global growth and inflation indicators. Yellow dot is the current reading.

Source: Royal London Asset Management. For illustrative purposes only.

The Investment Clock is updated by the Multi Asset team on a regular basis. To find out more about the concept and premise behind the Investment Clock, visit our Multi Asset capability page.

Find out more about the Investment Clock

March 2025

No such thing as passive in multi asset

This is the time for active management. We review our strategic asset mix regularly to maximise growth for a given level of risk, diversifying across real assets, inflation hedges and defensive fixed income and cash holdings. We seek to add value on a day to day basis through tactical asset allocation and active security selection.

Taking profits on equities amid elevated risks

The geopolitical outlook is uncertain with Trump back in power and wars raging in Eastern Europe and the Middle East. Macro backdrop remains supportive for now, but the US-led post-election boom looks to be reversing. Risk of tariffs and other policy changes have started to weigh on business and consumer confidence. We have taken profits on global equities and turned underweight US equities; we prefer Europe where company earnings have been stronger and fiscal policy likely to support growth.

Commodities hedge against unexpected inflation

·We believe the pandemic ushered in a new regime of “spikeflation” characterised by periodic price level shocks and shorter boom-bust cycles. A global trade war reminiscent of the 1930s could raise the cost of imports the world over and challenge the low inflation consensus. Commodities are a useful hedge.

The views expressed are the author’s own and do not constitute investment advice.
Source: Royal London Asset Management as at March 2025.

Access all our Investment Clock insights including articles, blogs, videos, webinars, and timely economic updates from across the Multi Asset team.