2025 Long-term Strategic Asset Allocation Overview

This document is a guide detailing the long-term strategic asset allocation recommendations for 2025. It outlines key insights regarding the economic outlook, emphasizing cautious optimism amid elevated tariff risks. The document presents an analysis of fixed income, equity, and alternative asset classes, highlighting the expected returns and risks associated with each. It discusses the anticipated performance of Canadian and US equities, noting the influence of artificial intelligence stocks and the potential for increased volatility in 2025. The guide also emphasizes the importance of maintaining investment goals and diversification in portfolios, particularly in light of recent market conditions. Furthermore, it addresses the implications for clients, advising them to prepare for near-term volatility while adhering to a long-term investment strategy. The document concludes with specific asset allocation recommendations across various categories, including capital preservation, income, and growth, based on expected returns and historical performance.