MRB Asset Allocation The Beginning Of The End

ASSET ALLOCATION Independent Investment Strategy August 7, 2026

The Beginning Of The End z Late-cycle conditions warrant only a modest pro-growth tilt, despite supportive macro fundamentals. Overweight exposure to cash within a multi-asset portfolio is still appropriate on a 6-12 month horizon.

z Solid economic growth, sticky above target inflation and central bank rate hikes greater than currently expected underpin our underweight recommendation on bonds. Favor short duration, inflation protection and high-yield and emerging market bonds within a fixed-income portfolio.

z Optimistic earnings growth, rich valuations and outsized exposure to technology imply moderate returns and considerable volatility for equities in the year ahead, with increasing scope for disappointments. Stay neutral on equities within a multi-asset portfolio.

z Prudent diversification and a narrowing of the economic and earnings growth gap between the U.S. and rest of the world warrants a mild underweight on the U.S. within a global equity portfolio. Emerging markets, Japan and the euro area offer a more favorable risk-reward trade-off and should be overweighted.

z Maintain neutral exposure to commodities with a tilt toward base metals. A pickup in relative economic growth outside the U.S. will push the U.S. dollar lower in the coming year.

MRB Tradebook p. 18 z Initiating two new equity trades and closing one.

The global economic expansion should continue to roll on, but the threats to the bull run in risk assets This Week's Research are growing1. While the Strait of Hormuz is likely to normalize in the coming months, the Middle A New Phase Of Global LeaderShift p. 19

East will remain a periodic source of market Cyclical Drivers Point To A Persistently volatility. Inflation remains an underappreciated p. 19 Weak CAD/USD problem. Central banks are behind the curve. Extraordinary global earnings growth is poised U.S.: Is The Bond Market Really Doing p. 21 The Heavy Lifting For The Fed? to slow. Credit spreads in key parts of the A.I. space are widening steadily. Bond yields MRB Asset Class Indicators click here

1 MRB Weekly Macro Strategy "Don’t Forget Where The Exits MRB's Investment Recommendations click here Are, Just In Case", July 24, 2026

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ASSET ALLOCATION l August 7, 2026

Table 1 MRB Asset Allocation Recommendations1 (6-12 month horizon)

Overall Asset Allocation - N+ Fixed Income Duration Equities Government Bonds Fixed Income Yield Curve5 Cash Inflation Protection Commodities Corporate Investment-Grade Bonds6: High-Yield Regional Equities2 EM USD Debt Australia Sovereign: Local Currency Debt Canada EM Markets DM Government Bonds6 (Currency Hedged) Euro Area Australia Japan Canada Sweden Euro Area Switzerland Japan U.K. New Zealand U.S. Norway Sweden U.S. Equity Sectors3 Switzerland Consumer Discretionary U.K. Communication Services U.S. Consumer Staples Energy Currencies (vs US$) Financials Australia Health Care Canada Industrials Euro Area Information Technology Japan Materials New Zealand Real Estate Norway Utilities Singapore Sweden Emerging Market Equities4 Switzerland Brazil U.K. China Emerging Markets India U.S. (DXY) Indonesia Korea Emerging Market Currencies (vs EM Basket) Mexico Brazil Saudi Arabia China South Africa India Taiwan Indonesia 1 6-12 month horizon Korea 2 Relative to common currency global equity benchmark 3 Relative to common currency U.S. equity benchmark Mexico 4 Relative to common currency emerging markets equity benchmark 5 + = Steepener and - = Flattener South Africa 6 Relative to hedged global fixed income benchmark Taiwan Note: Apart from the Asset Allocation section, recommendations are within asset Turkey classes; + = overweight, N = neutral and – = underweight © 2026

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