Global markets remain resilient, but the investment environment has become more selective and less forgiving.

The July positioning keeps broad equity exposure at benchmark, with the strongest opportunities concentrated in specific regions, sectors, and asset classes rather than across markets as a whole. Commodities remain the portfolio’s highest-conviction allocation, supported by supply constraints, improving activity in China, and their ability to protect portfolios against persistent inflation. By contrast, credit spreads are already priced for perfection, long-duration bond exposure remains vulnerable to higher-for-longer rates, and equity leadership is increasingly concentrated in AI and semiconductor-related companies.