The US economy continues to look robust, so we have stayed constructive on growth assets and short maturity global credit where yields are attractive. We still believe that the path to 2% inflation in the US is relatively unclear. If anything, our conviction on this point has increased because easier financial conditions may ultimately pave the way for the return of sticky inflation.
Home bias might be an understandable trait for investors, but in the current environment a lack of meaningful international diversification—particularly towards the Asia-Pacific region—risks leaving substantial amounts of investment returns on the table.