04 September 2009 at 11:27 GMT
Our Asset Allocation Model has shifted its scenario from "Outright bearish" to "Moderately bearish" for the first time in more than a year. The reason is less decelerating global economy (according to our Global Business Cycle Indicator) and that means that the overall allocation has changed and now recommends a net long (however small) position in equities.
To:
- 12% long MSCI World
- 8% long MSCI Emerging Markets
- 80% long Government Fixed Income (1-3 year US and EUR treasuries)
From:
- 20% short MSCI World
- 5% short CRB Index
- 5% short MSCI Emerging Markets
- 70% long Government Fixed Income (recently 1-3 year US and EUR treasuries)
Download the Asset Allocation Model