Daily Asset Allocation

Acronyms explained :

• GDP = Gross Domestic Product and is used to determine the "weight" of each country.

• EQ = Equity, stocks

• GDP bias gives you a choice which zone you want to get more weight in your allocation.

  Every investor has a natural geographical investment bias depending on where he/she lives :

  • World = a totally neutral GDP weight attribution, fitting for a true global investor

  • EMEA = Europe, Middle East and Africa : more weight is given to this zone

  • AMER = Americas (North and Latin) get more GDP weight in this setting

  • APAC = Asia Pacific countries get more GDP weight

The heatmap itself

shows you in a glance 40 countries that we monitor for:

• Last known annual GDP in comparable USD millions

• GDP growth TREND (current growth vs 1-year ahead forecast)

• Inflation TREND (current inflation vs 1-year ahead forecast

Economic cycle

Based upon gdp growth and inflation TRENDS we get an idea of in which phase the economic cycle a country most likely is.

Preferred Asset Types for a given point in the economic cycle

A given asset type tends to perform better in a certain point of an economic cycle :

• Equity when Growth trends Up & Inflation trends Down

• Commodities when Growth trends Up & Inflation trends Up

• Cash when Growth trends Down & Inflation trends Up

• Bonds when Growth trends Down & inflation trends Down

  • At the bottom of the map you can see the corresponding preferred asset type.

Daily macro heatmap