Investment Clock

As at January 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.

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January 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.

Tactically overweight equities despite valuations

The geopolitical outlook is uncertain with Trump back in power and wars raging in Eastern Europe and the Middle East. However, the Investment Clock is in equity-friendly Recovery with central banks cutting rates and fiscal stimulus likely in the US and China. We start the year overweight stocks versus bonds, preferring the US to Europe and Japan to China but will keep the macro situation under constant review.

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. Strong US growth, the impact of tariffs or an interruption of crude oil supplies could 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 January 2025.

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