Investment Clock position

As at July 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.

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July 2025

No such thing as passive in multi asset

Our strategic asset mix aims to maximise growth for a given level of risk by diversifying across real assets, inflation hedges and more 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.

Turning more constructive on equity markets

US tech stocks have led the rebound in equity markets from their ‘Liberation Day’ lows back to all-time highs as recession fears have faded. We have added to our position in stocks as technicals continue to improve but continue to flag that the medium-term macro outlook is still uncertain and impact from recent policy changes is yet to be seen. At the tactical level, we prefer US and EM to Europe and prefer growth sectors to defensives.

Tariffs to extend Spikeflation

The pandemic ushered in a new regime of “spikeflation” characterised by periodic price level shocks and shorter boom-bust cycles. The Trump Tariff shock could end up like Covid – a deflationary panic giving way to an inflationary recovery. Stimulus is not a given in a supply shock, however, and a longer, more painful workout like the GFC can’t be ruled out.

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

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