Earnings growth and attractive valuations for Japanese companies, reforms to corporate governance, and other shifts in the Japanese economy may create opportunities for investors.
In corporate credit markets, early indicators of stress often emerge subtly — not through dramatic dislocations, but through nuanced shifts in borrower behavior and market dynamics.
At times like this, our Internal Financial System™ comes alive. Inside us, different parts react to the same market in opposite ways. A risk-taking part may feel emboldened by the gains and want to buy more.
Investors looking to profit from a “Goldilocks” environment where US stocks rally but Treasury market losses are contained should short the dollar, according to a new study published by Morgan Stanley.
Head of U.S. Fixed Income Greg Wilensky and Portfolio Manager Jeremiah Buckley discuss how balanced strategies can help investors stay true to their long-term objectives by providing a less volatile option to an all-equity portfolio.
The 10-year Treasury briefly tested 4% and slipped just below, exactly what you’d expect when credit jitters boost demand for safe collateral. Real yields eased as well, consistent with a modest risk-off bid. Treasuries remain the cleanest hedge when credit fears pop, and that relationship asserted itself again last week.
Active fixed income ETFs can provide the refresh many investors want as the year draws to an end in an uncertain rate market.
All it took was a classic bout of haven buying to wake up a slumbering Treasuries market and drive benchmark yields to the lowest in months.
Debt-driven growth definitely feels good. We all enjoy it immensely as long as it lasts. Then the lights go out and the party’s over. Yes, it starts again, but not until we all stumble around in the dark for a while.
In another sign that we are entering an era of even looser monetary policy, Federal Reserve Chairman Jerome Powell hinted that balance sheet reduction is about to come to an end.
The third quarter demonstrated the market’s ability to focus on powerful, long-term themes like technological productivity and monetary policy, even amidst significant short-term political noise. While large technology companies were once again a driver of headline returns, the positive performance across nearly all global asset classes rewarded a diversified approach.
The stock and bond markets are taking the government shutdown—and lack of data releases—in stride, but how long the calm might last is an open question.
In a week marked by renewed S&P 500 volatility stemming from reignited tariff talks and the ongoing challenge of a government shutdown that continues to delay crucial government reports, investors and analysts have increasingly turned to secondary economic indicators for a timely view of the U.S. economy.
As the bond market expects more rate cuts to come after September’s drop of 25 basis points, investors may want to consider intermediate bonds as a way to maximize income.
As the calendar has now turned squarely into Q4, the sweepstakes for who will be nominated as next Chair of the Federal Reserve will no doubt increase.
According to Wall Street Horizon’s proprietary data, Q3 2025 marked a record in the number of new U.S. ETF launches. The tally (above 200) brought the trailing four-quarter sum to more than 800. Investors have never had more choice to tweak their strategies, aim for higher income yields, or even bet on single stocks in new, creative ways.
To start from the top, the dollar’s doing fine. Having appreciated 3% in the past month, it remains above its 40-year average. It still commands the lion’s share of currency trading and global central bank reserves, even if international investors are hedging more exposure.
We examine the broader implications of China’s threat to expand restrictions on rare-earth exports.
Big banks begin reporting Tuesday and are expected to benefit from a steeper yield curve, strong trading, and investment banking demand. The profit path ahead is less certain.
As our title suggests, September saw positive performance in fixed income markets but a great and overdue catch-up for municipal bonds.
This Packers season has parallels to today’s financial markets. The Artificial Intelligence (AI) boom has propelled markets higher for the past 3 years. The S&P 500 is up just shy of 15% through 9/30/25, following 20%+ years in 2023 and 2024.
Last week’s headlines around China tariffs and corresponding weakness in oil prices brought back memories of April and May when oil and energy stocks sold off sharply on the heels of tariff news. The weakness in energy infrastructure has been particularly acute.
Sentiment in the fixed income markets remains bullish and issuance is robust, but spreads are tight so we are staying defensive and investing opportunistically.
Doug Drabik discusses fixed income market conditions and offers insight for bond investors.
The Fed may be chasing economic balance with its tiny nudges. Our wisest course is to find our own personal financial balance within the context of the larger economy. We can build it one grounded financial decision at a time.
Trump’s threat to impose 100% tariffs roiled markets Friday, and clearly, if implemented, would send stocks much lower. But this may also be the last salvo before a final deal is worked out.
After joining the World Trade Organization (WTO) in 2001, China’s trade with Latin America grew an average of 31% a year for approximately the next decade. In 2024, bilateral trade between the two regions hit $518 billion, overtaking the U.S. as South America’s top trading partner.
As we write this, the market’s reaction to the government shutdown in the U.S. has been little more than a shoulder shrug. That would seem a rational response, particularly if this shutdown is short-lived.
These days, advisors and their clients are directly marketed private credit through interval funds and tender-offer structures. This change raises an important question: What should you say to a client who asks about these products?
It's odd to consider, but a recession could flip our bullish outlook on bonds to bearish. It's unusual because typically, inflation drops during a recession, leading to lower yields and higher bond prices. However, we believe that if an economic downturn or recession occurs soon, the immediate effect on bonds will be favorable.
This year several new funds have debuted, each designed to meet the changing needs of today’s diversified portfolios.
Treasuries advanced Friday as traders reacted to evidence the US government shutdown may be curtailing economic activity.
The U.S. Federal Reserve instituted its first interest rate cut of the year, which could force investors to reassess their fixed income portfolios to plan for further monetary policy changes. Given this, it’s an opportune time to consider using more flexible active funds in order to mute any rate cut noise.
Since the recovery from the global financial crisis (GFC), the S&P 500 has delivered one of the strongest and longest bull markets in U.S. history, with 16.2% annualized returns.
While the Consumer Price Index is closely followed, these five under-the-radar inflation gauges can provide more insight into inflation's trajectory.
The Fed has made its first rate cut of the year, with more possibly ahead—but that doesn’t mean longer-term yields like the 10-year Treasury will follow. So far, they haven’t. The potential result? A frustrating mix of falling money market rates and stagnant at best bond prices. For yield-seeking investors, equity income strategies may offer a compelling alternative, with opportunities less sensitive to interest rate swings.
For years, mainstream investment gurus have steered clients away from gold. But with the yellow metal gaining more than 87 percent since January 2024, it’s getting hard to ignore the yellow metal.
One obvious tweety bird is the riskiest type of bank debt, known as perpetual additional tier one bonds. These securities allow regulators to wipe out investors if a bank fails, but to compensate they offer the highest yields for lending to financial firms.
Higher yields earlier in the year opened a window for meaningful tax loss harvesting. Investors who acted captured valuable tax savings, while those who waited saw opportunities diminish as yields retraced lower through the end of the third quarter.
To say the roof hasn’t caved in on the dollar is an understatement. Despite the doomsaying that was pervasive after the White House imposed sweeping tariffs, the greenback is as entrenched in the cogs of global finance as ever. If anything, its use is more pervasive.
The balance of risks to the Federal Reserve’s dual mandate (price stability and maximum employment) prompted the central bank to lower its policy rate in September in an effort to bolster the economy and employment.
The market is in a funny place. September was a strong month for financial markets, its typical negative seasonality notwithstanding.
Fixed Income Portfolio Managers Brent Olson and Tom Ross consider current credit spread levels and offer reasons why they could remain rangebound for some time.
Markets surged to record highs in 3Q 2025 as the Fed’s first rate cut reignited optimism, with AI-driven market growth and broader participation leading gains, but a cooling labor market and fiscal uncertainty set the tone for a more selective, year-end investment positioning in 4Q
In big news for the energy infrastructure space, Targa Resources Corp. (TRGP) has announced significant new investments in its Permian Basin operations. The announcement includes a new natural gas liquids (NGL) pipeline and incremental natural gas infrastructure.
Many investors have turned to MLPs over the years for their income, which makes the outlook for distributions a perennial focus for investors. With MLP yields currently elevated relative to long-term averages and a flattish near-term outlook for U.S. energy production, the distribution outlook is particularly topical.
The extra yield investors demand to own dollar bonds of emerging market sovereigns rather than US Treasuries has shrunk to the least in seven years — and the rally is set to run further.
With the global economy proving more resilient than expected, we upgrade equities to overweight.
Over the past three years, the economic conversation has been a “promised recession.” If you read the headlines, tracked economist surveys, or even listened to Wall Street strategists, you would have assumed a downturn was imminent. And yet, here we are, late into 2025, and the U.S. economy is still standing.
