Closed End Funds

Private equity transaction volumes remain limited despite predictions for a boom in 2025. With interest rates remaining elevated and the economic backdrop increasingly uncertain, executing acquisitions and IPOs is proving a challenge, leading financial sponsors to hold portfolio companies for longer.

In this article, Russ Koesterich discusses the ongoing uncertainty around tariffs and how investors can protect their portfolios against the potential for an environment of prolonged and heighted volatility.

During periods of market volatility and declines, investors get concerned. They question their long-term objectives and whether they have more risk in their portfolios than they can tolerate. These are reasonable thoughts to have at times like these.

Compare corporate and municipal bonds, including risks, returns, and tax benefits. Learn which bond type fits your investment goals.

Inflation risk has been a significant topic of discussion in the mainstream media for the last few years.

The first quarter of 2025 marked a significant departure from the preceding two years, which had been characterized by an improving global economy and correspondingly positive market returns. Market performance in Q1 was dominated by abrupt, short-term policy shifts rather than longer-term economic trends, and tariffs became the foremost concern for market participants.

Less favorable seasonal technicals, increased focus on municipal-specific policy risks, and severe volatility spurred by higher-than-anticipated tariff increases weighed heavily
on sentiment and resulted in deeply negative total returns and significant underperformance versus Treasuries in March and early April.

Concerns about a trade war have rattled markets so far in 2025, but we believe fixed income investors need to be patient, stay defensive, and see how things evolve before making any big decisions.

How recent market volatility has contributed to a sharp reversal in global equities.

In this week’s edition, we shift our focus to another critical segment of the ABS market: those tied to consumer loans, such as credit cards and auto loans.

Recent economic data has been all over the map. Consumer confidence sank this month to the lowest level since November 2022, yet the labor market remains strong, with historically low unemployment and rising wages.

Investor’s bearish sentiment has surged to levels that generally align with previous market corrections and crashes.

Treasury yields have been falling for weeks. Yet inflation expectations remain high and recent growth data have been fairly strong—not a traditional backdrop for declining yields. What's happening?

High fiscal deficits from tax cuts and tariffs raised concerns about inflation. However, markets have since shifted their focus.

Unlike most of the rest of the world, I will attempt to minimize all there is to say about the beginning of the next 4 years, as the persistent yack and what to make of it reverberates in all corners of the financial globe.

In this primer we define small cap growth funds, provide practical suggestions on how to invest in them, and explain why we believe they are a strategically important asset class.

Russ Koesterich discusses the risk of higher interest rates and the potential impact (both positive and negative) such a move could have on markets.

Just recently, S&P Global released its 2026 earnings estimates, which, for lack of a better word, have gone parabolic. Such should not be surprising given the ongoing exuberance on Wall Street. Unsurprisingly, rationalizations justify illogic when too much money is chasing too few assets.

Private credit has been one of the most talked-about segments in fixed income markets over the last few years.

At the same time, the Fed has mostly ignored the impact of easy financial conditions—the combination of stock, bond, and credit conditions—offsetting increases in interest rates by bolstering wealth and confidence.

2025 is beginning in much the same manner as 2024, with investors focused on whether the Chinese government is going to implement new stimulus measures.

In this article, Russ Koesterich discusses why gold may continue to advance in 2025 despite a stronger dollar and elevated real rate environment.

Karen Carpenter was one the greatest singers of my lifetime. One of her biggest hits was called, “Top of the World.” The key line of the song says, “I’m on top of the world looking down on creation and the only explanation I can find, is the love that I’ve found ever since you’ve been around, you most put me at the top of the world!”

The first month of 2025 will soon be behind us. We’ve seen new inflation data and earnings season start to ramp up.

In today’s post, we will examine the money supply represented by M2, the Federal budget deficit, the Fed’s previous adventures with QE, and the correlation to inflation.

U.S. Treasury yields have increased notably since September, particularly at the long end of the curve, with the 10-year yield up over 100 basis points from its recent lows. We unpack the drivers behind this big move in rates and our outlook for bonds going forward.

Amid an unsettled global economic outlook and elevated equity valuations, bond markets present attractive yields and important diversification benefits.

Although we are loath to make predictions, conditions appear to be favorable for fixed income in the coming year, and we think investors should consider adjusting their allocations accordingly.

The strong performance of large-cap stocks over the past decade has left the market exceptionally top-heavy. By some measures, stock market capitalization has never been more concentrated among a handful of large stocks as today.

Ten years ago, Research Affiliates launched the Asset Allocation Interactive online tool, making our CMEs freely available to the public. With one full cycle complete, we can see what has worked well and where we can improve.

US equities were up notably in 2024, due to a strong economy, accelerating earnings growth, US election results, and AI/mega-cap strength.

Over the last decade, U.S. large cap growth stocks have been far and away the best performing major financial asset in the world.

Why cyclical leadership in equities could continue into 2025.

The U.S. economy and stock market are entering 2025 from a position of strength, but risks of volatility—especially pertaining to policy—are much higher compared to last year.

We compare investor risk-taking behaviors at the start of the bull market with those nearly 16 years later. We also analyze key market areas that can offer essential diversification to help manage overall portfolio risk.

The question on “everyone’s” mind, whether the back or the front, is where will the stock market be in two, three, six years?

With President-elect Donald Trump set to assume office in January, the U.S. military and cybersecurity sectors could experience sweeping changes, creating opportunities for investors who recognize the long-term growth potential in defense and technology.

Municipal bonds broke their winning streak in October, posting negative total returns alongside broader fixed income assets.

As we think about investing around a historic election, establishing what we know, what we need to know, and what we can count on is a useful foundation for navigating the uncertainty.

In this article, Russ Koesterich discusses why he believes U.S. exceptionalism is a trend that is likely to continue.

Investment grade bonds have long been synonymous with a “core” fixed income allocation, but we believe a flexible strategy also belongs in most bond portfolios, as managers can adjust their exposure based on market conditions.

In this article, Russ Koesterich discusses gold may continue to serve as a store of value in the current environment.

When inflation begins to upend financial markets, as it has over the past few years, it represents a tremendous disruption.

The stock and bond markets were not spooked in September. The S&P 500 had its best September in the last 11 years with a +2% performance.

In the past few years it certainly has been. No wonder.

Credit indices rallied during the third quarter, despite a variety of economic headwinds, and it appears FOMO (fear of missing out) is fueling the bullish sentiment more than fundamentals.

The puck has certainly moved since our last market commentary. This month, we argue that the needle on portfolio construction should move with it. Equities have been the driver of returns for much of the last few years.