'MODERATELY PRO-RISK'?: What investors should be thinking about right now

Market Sentiment - Current market sentiment shows a slowdown, but overall performance is close to record levels, indicating cautious optimism among investors [1][2] - Concerns differ between US and non-US investors, with US investors questioning the sustainability of US exceptionalism, while non-US investors are more focused on geopolitical issues [3] Investment Strategy - The company maintains a mildly pro-risk stance, remaining overweight in equities and constructive on the US market, advising clients not to pull back from US investments [4][5] - Clients are encouraged to diversify their portfolios beyond concentrated positions in US technology and healthcare sectors, exploring opportunities in private credit in Europe, private equity in Asia, and public equities in India and Japan [6][8] Retail Investor Activity - Retail investors are re-engaging with the market, as evidenced by significant movements in stocks like Beyond Meat and Krispy Kreme, although speculative trading may lead to volatility [9][10] Gold Market Insights - The company remains constructive on gold, viewing recent price drops as potential buying opportunities, with a year-end target of $4,900 per ounce, driven by structural demand from central banks [13][15] - The recent sell-off in gold is noted as the largest drop since 2013, highlighting the volatility in the market [14] Interest Rate Expectations - The company anticipates interest rate cuts from the Federal Reserve, expecting three cuts by the end of the year and two more in the following year, with current expectations for CPI at 3.1% [16][18]