asset allocation | october 18, 2024
Asset Allocation Viewpoints Webcast - Navigating shifting policies
Our panel evaluates opportunity amid shifting Fed focus and potential for increased volatility.
51:33
Sébastien Page, CFA®
Head of Global Multi-Asset and Chief Investment Officer
Christina Noonan, CFA®
Associate Portfolio Manager
Gunjan Banerji
Lead Writer at The Wall Street Journal and CNBC Contributor
As the Fed shifts its focus from battling inflation to stabilizing growth, market volatility could potentially increase with changing economic data. The upcoming U.S. election may amplify this uncertainty, as both candidates are expected to change economic policies. Watch the quarterly Asset Allocation Viewpoints webcast, "Navigating Shifting Policies," featuring insights from Sébastien Page, head of Global Multi-Asset and Chief Investment Officer, guest Gunjan Banerji from The Wall Street Journal, and moderator Christina Noonan, multi-asset portfolio manager.
Key Insights:
- Market Sentiment and Central Bank Policies: Understand how inflation and policy decisions shape your investment strategy.
- Recession Probabilities and Election Impacts: Learn why staying invested, even during political shifts, is key.
- Optimistic Outlook: Page leaned toward a bullish, or optimistic, outlook despite mixed signals, citing historical trends where they generally outperform bonds.
- Cautious Investors: Banerji noted that while the S&P 500 Index has hit multiple records, a significant amount of cash remains in money market funds, indicating cautious investor sentiment.
The October 2024 Asset Allocation Committee's strategy includes a slight overweight in stocks versus bonds, focusing on value stocks, emerging markets, and short-duration bonds. A disciplined investment approach is essential to adapting to market uncertainties.
The T. Rowe Price Asset Allocation Committee is responsible for reviewing global market trends and determining the allocation of assets across different asset classes within client portfolios, essentially deciding how much to invest in stocks, bonds, and other investments based on market conditions, with the goal of maximizing returns while managing risk over a set time frame, usually 6-18 months; their insights are then used by the entire company to inform investment decisions for clients.
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