Market Update – January 2019
Given our macro outlook, attractive valuations and technical support, we are overweight growth assets within our multi-asset portfolios, and we remain underweight bonds. Within our growth assets, we hold overweight positions in cyclical sectors such as industrials, energy, materials and technology. These sectors continue to benefit from both cyclical and structural growth tailwinds. The relative valuation of cyclical sectors have reached extremes usually associated with the depths of recessions. We hold underweight positions in defensive sectors such as consumer staples, telecoms and utilities.