Performance and positioning update:
- Performance across the risk profiles within the Target Allocation ETF model portfolios outperformed their benchmarks in May.
- Positive absolute performance was achieved by all models driven in part by overweight positions in US, large cap, growth, tech, and 'earnings-beating' quality stocks.
- Actively managed factor rotation strategies also contributed to performance, while a preference for higher quality US credit and longer duration exposure supported fixed income returns.
Inflation’s recent hot streak may have finally gone bust:
Q1 2024 Earnings Scorecard
Source: Bloomberg, Atlanta Fed Core Sticky CPI Monthly Index, Piper Sandler, as of 5/31/2024. The Atlanta Fed sticky price index sorts the components of the CPI into either flexible or sticky (slow to change) categories based on the frequency of their price adjustment. Definitions: Consumer Price Index (CPI), Producer Price Index (PPI), Personal Consumption Expenditures (PCE).
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Michael Gates
Michael Gates, CFA, Managing Director, is the head of Model Portfolio Solutions in the Americas within BlackRock's Multi-Asset Strategies & Solutions group.
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