AI Investment Strengthens Growth as Tight Credit Keeps Risk Positioning Cautious

This report, produced by L&G’s Asset Allocation, Economics, and Strategy teams, assesses shifting macro conditions and their implications for multi-asset positioning.

• Global growth is resilient, supported by robust US AI-driven investment, while hiring softness heightens vulnerability to shocks.

• Equity and duration views remain neutral, but credit stays significantly underweight as spreads offer limited compensation for risk.

• Opportunities arise in selective sovereigns, infrastructure trusts, and currency pairs, while valuation mean reversion now enhances expected-return modelling.

Explore the full report to examine the detailed analysis and strategic insights behind these positioning decisions.

This report, produced by L&G’s Asset Allocation, Economics, and Strategy teams, assesses shifting macro conditions and their implications for multi-asset positioning.

• Global growth is resilient, supported by robust US AI-driven investment, while hiring softness heightens vulnerability to shocks.

• Equity and duration views remain neutral, but credit stays significantly underweight as spreads offer limited compensation for risk.

• Opportunities arise in selective sovereigns, infrastructure trusts, and currency pairs, while valuation mean reversion now enhances expected-return modelling.

Explore the full report to examine the detailed analysis and strategic insights behind these positioning decisions.