Global Asset Allocation Strategy

Mary is a portfolio manager at a large investment firm that focuses on global investments. As part of her strategy, she is currently reassessing the firm’s asset allocation strategy in light of evolving market conditions. With interest rates rising and inflation becoming a greater concern in various regions around the world, she is considering the implications for different asset classes.

Mary recalls the importance of global asset allocation and how it can help diversify risk across geographical boundaries while simultaneously enhancing potential returns. She understands that different regions may react differently to economic changes, making it essential to select the right balance of assets.

As she prepares her recommendations, she knows she must consider varying economic cycles, growth rates, and inflation indicators in different markets. Which of the following asset allocation strategies would Mary most likely consider to effectively manage risk while taking advantage of global opportunities?