Investment Clock

As at December 2024. 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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December 2024

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.

Commodities hedge against unexpected inflation

We believe the pandemic ushered in a regime characterised by periodic spikes in inflation and shorter boom-bust cycles. Stronger US growth or events that impact fossil fuel supplies could challenge the consensus view that inflation will stay permanently around target levels. Commodities are a useful hedge.

Tactically overweight equities despite valuations

The Investment Clock is in the equity-friendly Recovery quadrant and the technical backdrop is supportive. With inflation at lower levels, central banks are cutting rates globally, which should provide a boost to business confidence and earnings, potentially offsetting negatives from any Trump tariffs and deportations. We were overweight US equities going into the election and remain so.

The views expressed are the author’s own and do not constitute investment advice.
Source: Royal London Asset Management as at December 2024.

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