Darius sat down with Schwab Network’s Nicole Petallides last week to discuss the current risk-on Market Regime and the outlook for asset markets.

If you missed the interview, here is the most important takeaway from the conversation that has significant implications for your portfolio: 

We Are In A Risk-On Market Regime And Believe Investors Should Consider Buying This Dip For Three Reasons:

  1. U.S. growth is likely to exceed consensus expectations over the medium term, alongside an improving global economy.
  2. The Federal Reserve maintains an asymmetrically dovish reaction function, which we believe will continue to support asset markets over the medium term. 
  3. U.S. and global liquidity are likely to accelerate markedly over the medium term. 

Despite our being in a risk-on Market Regime, our positioning model recently indicated a high risk of a correction in risk assets, and we believe the current decline in stocks is likely the beginning of that correction. 

We do not expect this correction to be severe, likely no more than 5-8% in $SPX price terms. The earliest we currently anticipate a sustained risk-off market regime commencing is Q2 of next year.

By now, you’ve likely realized that piecing together an investment strategy from finance podcasts, YouTube videos, and macro “gurus” on 𝕏 is not delivering the results you know you deserve. 

This kind of approach only leads to confusion from conflicting advice, frustration from mediocre returns, and exhaustion from the emotional rollercoaster of your portfolio swings.

If you don’t change your process, how can you expect to get better results?

Over 2,000 investors around the world confidently make smarter investment decisions using our clear, actionable, and accurate signals—and as a result, they make more money.

If you are ready to learn more about how our clients incorporate macro into their investment process and how you can do the same, we invite you to watch our complimentary 3-part macro masterclass. 

No catch, just macro insights to help you grow your portfolio—our way of saying thanks for being part of the 42 Macro universe.