ASR Asset Allocation Survey
Q3 2020

The Most Optimistic Survey Since December 2016

There is no mistaking the aggressive reflationary tone of our September survey. Investors are looking for further cyclical improvements (on top of Q3’s rebound), a recovery in corporate earnings, and some return of pricing power.

Investors See More Upside Risks to Inflation

Our respondents were more confident of higher inflation, more confident of EM assets, and more confident of a weaker USD. Investors stood by their positive view of Corporate Credit and their unambiguous preference for Stocks over Bonds.

Three Quarters of Panel Falls into Bullish ‘Clusters’

Three quarters of the panel falls into groups that are optimistic on risk assets, according to our cluster analysis of responses (see p 12). Almost half the panel is allocated to the group that expects inflation to accelerate and bond yields to rise.