Advisers boost equities and emerging markets, favoring multi-asset portfolios amid high valuations and shifting rates.

Financial advisers are increasingly using multi-asset portfolios to help clients achieve specific goals while managing risk, adjusting allocations amid high US equity valuations, resilient economic data, and shifting central bank policies. Pictet’s Luca Paolini is boosting equities due to global economic strength and expected rate cuts, while downgrading bonds over inflation risks and limited upside. Emerging markets are favored for low valuations, and advisers stress the need to scrutinize fund structures, as not all multi-asset funds deliver real diversification. Concerns persist over concentrated tech-driven gains and stretched valuations, though strong earnings suggest the market may not be in bubble territory.