In the latest presentation from Goldman's head of asset allocation, Christian Mueller-Glissman (available to pro subscribers at the usual place), reiterated his modestly pro-risk asset allocation for 2025 (OW equity/bonds, N commodities/cash and UW credit).
While his macro baseline remains relatively friendly - at least for the US - in his latest note he writes that the recent announcements of tariffs (with some retaliation) have driven more volatility and uncertainty on the macro outlook. At the same time risk premia across assets are low and investor positioning remains bullish.
In response, the Goldman trader is now tactically focusing more on downside hedges, such as selective option overlays, Dollar, Gold, CHF and TIPS, in the event bonds struggle to buffer equities, and upside hedges on European assets.
