Weekly Market Commentary 2-23-2026

“What Is Changing in OUR 2026 Strategic Asset Allocation (SAA)?"
See what we have to say about the following:

 

 

 

• What Is Changing in OUR 2026 Strategic Asset Allocation (SAA)
  The 2026 SAA modestly underweights total equity risk while shifting toward U.S. large-cap value, developed international equities, and maintaining core high-quality fixed income alongside real assets and alternatives for resilience.

 

• Valuations and Long-Term Return Expectations (Graphs)
  Valuation graphs show equity risk premiums are fair but limited versus bonds, reinforcing a balanced allocation and highlighting that starting valuations have historically been strong predictors of long-term returns.

 

• Equity and Fixed Income Positioning for This Cycle
  Equity exposure remains below benchmark with reduced small caps to manage volatility, while fixed income prioritizes income, liquidity, and diversification through high-quality bonds and restrained duration.

 

• STAAC Oversight and Commentary
  STAAC reviews and validates the model-driven SAA to ensure diversified, durable portfolios that reflect balanced long-term drivers rather than any single macro view.