MacroResearchBoard

Multi-Asset Portfolios: Cash Isn’t Trash – June 9, 2025

A just-published report updated our multi-asset recommendations and the main highlight was an unwinding of our tactical move taken in March to protect against what had become an increasingly dangerous tariff war. The U.S. administration has since pivoted and although elevated U.S. policy uncertainty will persist, a resilient U.S. and global economy should support risk assets until bond yields rise to a threatening level.

One interesting feature of recent years is that although developed market (DM) government bond yields have risen significantly since the era of depressed yields in the late-2010s (which even included negative bond yields in parts of Europe and Japan!), bonds have not been able to outperform cash returns. Worse, based on our research, investors are still too complacent on the long-run DM inflation outlook, especially in the market-leading U.S.

For a complete list of MRB’s latest asset allocation recommendations, please contact info@mrbpartners.com