The late phase of a business cycle can pose significant challenges to asset allocators. We think the keys to dealing with them are to stay flexible and to focus on quality when structuring a portfolio.

Here are our asset allocation themes for multi-asset portfolios in 2018.

With critical policy pivots on the horizon, investors should approach asset allocation with full appreciation for downside risk and stay focused on relative value and security selection.

Given our base case of modest global growth aided by a fiscal boost in the U.S., we believe positive returns can still be earned via targeted risk-taking.