With summer under way, aligning income generation with long-term growth helps reinforce portfolio resilience. A well-balanced allocation remains essential to navigating the coming months with confidence.
Key investment themes
- Confident outlook and balanced portfolio positioning
- Selective fixed income exposure on high-yield
- Renewed preference for US equities amid receding risks, favouring technology sector
- Swiss real estate as fixed income alternative for CHF investors
A balanced approach
The strategy we adopted over the past few months – a blend of tactical and hedging positions – has performed well in navigating the market volatility stemming from tariff tensions. With Trump now stepping back from his initial stance, we have implemented a diversified asset allocation across both asset classes and regions, expecting each to contribute to income generation.
At the same time, the continued erosion of the risk premium is limiting the upside for global equities, reinforcing our decision to diversify while maintaining a balanced equity allocation.
However, as US macroeconomic and earnings risks recede, and the US dollar weakens, we have returned to our previous conviction level on US equities, restoring the positioning we had before the flare-up in tariff tensions.
As a portfolio diversifier, we maintain a strong exposure to gold, supported by a persistently softening dollar and the prospect of lower interest rates.
With a busy summer ahead – including key deadlines on the 90-day tariff truce, the ‘Big Beautiful Bill’ and the earnings season – remaining invested, yet diversified, is essential to capturing performance in the second half of the year.
Read our July House View for more insights.
The opinions expressed herein are correct as at 4 July 2025 and are subject to change without notice. Any forecast, projection or target, where provided, is indicative only and is not guaranteed in any way.
