Staying Cautiously Risk On

TS Lombard remains cautiously risk-on, betting on a near-term reopening of the Strait of Hormuz to alleviate energy shocks. They are rotating out of precious metals into managed futures while increasing underweights on European equities and sovereign debt.

Key Takeaways

• 1.The report maintains a moderately risk-on stance based on the assumption that the Strait of Hormuz will reopen via a Memorandum of Understanding by late May 2026.
• 2.A rotation is recommended out of precious metals into managed futures and energy commodities, as gold's diversification benefit has weakened.
• 3.Underweight on European equities has been significantly increased due to weak macro data, stalling growth, and energy sector vulnerabilities.

Table of Contents

• Asset Allocation
• Multi Asset
• Model Portfolio
• Equities
• Fixed Income
• Currencies

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