Wilmington Trust's Meghan Shue says equities will outperform over the next 12 months

• Wilmington Trust is moving to a 'modest overweight' in equities, having previously been fully invested but cautious due to economic risks in Q1.
• The shift is driven by receding headline risks (war), a reaccelerating labor market, and expectations of Fed rate cuts this year due to disinflationary trends.
• Equities are expected to outperform fixed income over the next 12 months, with diversification recommended across large-cap, small-cap, and emerging markets, including a slight overweight to growth.

Meghan Shue of Wilmington Trust discusses their shift to a 'modest overweight' position in equities, citing receding geopolitical risks, a reaccelerating labor market, and disinflationary trends that could lead to Fed rate cuts. She anticipates equities will outperform fixed income over the next 12 months, advocating for diversification across large-cap, small-cap, and emerging markets.