As of May 2025, Atlas Capital Advisors sees an elevated probability that short-term cash investments will outperform stocks in the near term. In this video, our CIO Ken Frier explains why—and how that assessment has led us to modestly reduce equity exposure for most client portfolios.
This outlook is informed by the Atlas Capital Equity Downside Risk Dashboard, which combines five critical market signals:
- Economy – Are economic conditions improving or deteriorating?
- Valuation – Are stock prices reasonable relative to fundamentals?
- Inflation – Is inflation trending higher or lower?
- Equity Sentiment – Are stock prices trending up or down?
- Credit Sentiment – Are credit spreads tightening or widening?
Together, these five factors have historically provided more predictive power than any one on its own. When the dashboard average drops below a key threshold—as it recently has—it may signal a higher risk of equity underperformance.
Watch to learn how Atlas uses this data-driven approach to make timely, evidence-based asset allocation decisions for clients.
