Adaquant estimates as of 1st quarter 2018 are available now. You will get these latest estimates when you buy the license for Adaquant Asset Allocation Suite.
The biggest change compared to previous quarterly estimates is that the short-term interest rates in United States continue to increase significantly. This is especially visible in short-term corporate and government debt, however also the money market fund and savings bank account rates have been increasing. Increased interest rates mean higher estimated returns for short-term fixed-income investments. The estimated return for short-term government debt is now slightly above the expected inflation rate, which has not been the case for many years.
Also in UK similar trend has started. In the latest quarter the estimated returns for short-term fixed-income investments increased significantly. In Eurozone and Switzerland the interest rates have not yet increased, but it is likely that this trend will catch up also in these regions sooner than later.
Because estimated returns from low risk fixed-income investments have increased more than the estimated returns of riskier asset classes, the low risk asset classes have become more and more attractive. The stock market valuations are still historically high, so for many investors it would be currently rational to choose a rather conservative, lower risk investment approach.