US sentiment and impact on multi-asset portfolios/diversification

Journalist: Ima Jackson-Obot, FTAdviser

ended 10. October 2025

Hello advisers,

How are you adapting your multi-asset portfolio positioning in response to the recent shift in US monetary policy sentiment - from hawkish to dovish? With signs of a more dovish stance from the Federal Reserve, what changes — if any — are you making to equity, bond, or alternative exposures within balanced portfolios?

What’s your current view on regional equity exposure within multi-asset portfolios — are markets like the US or emerging Asia looking more attractive at this point in the cycle?

Are you seeing greater appetite from clients to re-enter risk assets as central banks signal policy easing, or is caution still the dominant sentiment?

How are you thinking about diversification in today’s environment — are traditional hedges like government bonds still playing their role, or are alternatives more front of mind?

Thanks

Ima

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Editor

Scott Gallacher

Director at Rowley Turton

Generally, I avoid taking too aggressive an asset allocation stance for clients, as the risks of being wrong can often outweigh the benefits of being right. I prefer instead to give the fund managers within our multi-asset funds the flexibility to adjust positioning as they see fit. That said, our portfolios tend to remain underweight the US, given ongoing concerns about the higher valuations of US equities relative to the rest of the world, and the risk that the US market could one day experience a 1980s/90s-style Japan scenario — where extreme valuations were followed by sharp fall and a prolonged period of market stagnation.

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