Weekly Commentary: Confusion yields opportunity

We up our strategic overweight to developed market (DM) equities, but near term elevated geopolitical tensions keep our tactical shopping basket on hold. Equities retreated as investors took renewed fright over the military stand-off involving Ukraine, helping pull down short-term bond yields from recent peaks. The market’s focus this week will be on PCE inflation, the Fed’s inflation target, for clues on the timing and magnitude of coming rate hikes.