Hold the Line - VP May 2024 Asset Allocation Discussion

• Equities: The correction signal from mid-April worked well, but was short-circuited by Powell at the Fed meeting. We see tactical risk-on opportunities within small caps, but overall now is a time to simply maintain equity exposure rather than press over/underweights.
• Fixed Income: MBS and TIPS remain our core allocation given the structural concerns surrounding nominals via financial repression risks.
• Commodities: Tactically take opportunities to trim (e.g. copper) but maintain core structural overweight to energy and real assets.

Links to Desert Island and Asset Allocation dashboards.