Eric mentioned rebalancing flows; BlackRock just did a big rebalance and remains overweight equities.
Katie Greifeld
Tushar Yadava
Our goal was to look through broader conditions and feel comfortable taking risk. We are overweight equities because earnings outlook is strong globally.
Tushar Yadava
We cut down exposure at the very top end of the cap range. The 2023-2025 narrow mega-cap leadership is probably gone; there's more breadth now.
You run a full multi-asset portfolio. Do you get pressure from investors to go to cash amid scary headlines?
Eric Balchunas
Tushar Yadava
Going to cash is great for headlines but not good for advisors or end investors. Most investors have learned to stay invested.
You've been at 3% overweight for a while. When were you last underweight, and what's your max overweight?
Katie Greifeld
Tushar Yadava
3% is near the top end; we've been as high as 5%. We were underweight in March 2023 during regional banking issues, tactically removing financial risk.
You mentioned fixed income as ballast. Where does that leave gold and crypto?
Scarlet Fu
Tushar Yadava
We've had gold for a couple of years. No one expected +100% returns. We looked at trimming back the gold hedge in our latest rebalance.
Model portfolios are a bigger chunk of flows. Do you agree they'll keep growing?
Eric Balchunas
Tushar Yadava
We think that number will definitely grow. We're positioning for that growth through customization, breadth, and scale.