AllianceBernstein

As Europe struggles with war, costly energy, record inflation and slowing growth, it’s no surprise that European corporate credit is out of favor.

In this year’s global economic crisis, no two regions are having identical experiences. While inflation rages across much of the world, price rises have been more moderate in some countries than others. Similarly, the scale of rate hikes and the degree of recession fears aren’t uniform.

With the year winding down, investors might think they’ve seen it all. But one element of market dysfunction that’s largely flown under the radar is increased friction within the US Treasury market. Treasuries are experiencing a liquidity decline on the back of economic uncertainty and higher volatility, with large blocks of government debt increasingly hard to trade.

In one of the most challenging years for markets, 2022 brought persistently high inflation, aggressive central bank tightening and heightened geopolitical risks, leaving investors with few places to hide.

After a tough year for equities, is a recovery imminent?

What a difference a decade makes!

Equity investors have sustained significant losses this year and are facing a long list of new uncertainties.

Equity valuations have fallen substantially as central banks hike interest rates to combat inflation.

The cost of prescription medicine is a constant strain for many Americans.

Equity investors are trying to figure out whether steep share-price declines have led to attractive valuations, given mounting threats to fundamental business performance. The answer varies from company to company and requires an active equity investing approach to separate winners from losers.

Technology stocks have been pummeled this year, leading some investors to question the sector’s future.

UK government bonds prices have plunged recently. Sterling-denominated corporate bonds have also fallen sharply and are looking cheap.

China's 20th National Congress could help air ideas for more growth-supportive policies.

The difficult capital markets saga of 2022 continued through the third quarter with few safe harbors as rates rose and growth slowed.

2022 has been a stormy year for bond investors, and the forecast calls for more of the same. We address today’s biggest investment challenges—from persistent inflation to rising rates to a looming recession—the silver linings of higher yields, wider credit spreads, and strategies for navigating bad weather.

Many investors are searching for assets that can help protect portfolios from inflation.

Equity market volatility persisted in the third quarter as investors came to terms with a new reality of high inflation and rising interest rates.

It’s been a tough year for investors, particularly in growth stocks.

Inflation remains persistently high, dominating everything else in the macro outlook.

While 2022 has been a challenging year for nearly every segment of the capital markets, it comes with a silver lining for income investors: higher yields.

With interest rates on the rise, the once red-hot US housing market is finally showing signs of cooling.

With interest rates on the rise, the once red-hot US housing market is finally showing signs of cooling.

In a time of uncertainty, we believe that quality is the key to investing in equities.

Energy prices have been on a rollercoaster ride the past few years, and the invasion of Ukraine upended the entire supply/demand framework. The path ahead for energy—and related investment opportunities—will be defined by how today’s “power problems” are resolved. Listen to the latest from the AB Disruptor Series Podcast as Rick Brink, our Chief Market Strategist, and a panel of energy experts zero in on critical issues in the energy story.

As surging natural gas prices stoke inflation throughout Europe, policymakers are responding to both reduce the economic damage of high energy prices and clamp down on blistering inflation rates.

Energy prices have been on a rollercoaster ride the past few years, and the invasion of Ukraine upended the entire supply/demand framework. The path ahead for energy—and related investment opportunities—will be defined by how today’s “power problems” are resolved.

China has pledged to reach carbon neutrality by 2060, and state-owned enterprises (SOEs) are responsible for half the country’s CO₂ emissions.

During this period of economic uncertainty and market stress, investors may be surprised to discover how a strategy targeting stocks that lose less in a downturn can beat the market over time.

Investors naturally gravitate toward higher-income segments as a way to boost traditional core bond yields.

Across the developed markets, central banks have embarked on a tightening path—with one exception: the Bank of Japan (BOJ).

The case for mid-cap stocks.

In small-cap markets, fundamental research is in short supply—and good environmental, social and governance (ESG) research is even scarcer.

The first six months of 2022 have served as a stark reminder that market outlooks can quickly shift. Advisors who want to retain business must now prepare clients for the possibility of greater volatility, abiding inflation and muted returns. Clients have many reasons to be skeptical of change and financial advisors (FAs) who don’t have these conversations now risk having painful discussions with disappointed investors. AllianceBernstein Advisor Institute’s, Ken Haman discusses key insights about human decision-making and research in behavioral finance to look at the practical challenges of managing client trust during uncertain times.

As prologues go, the first six months of this year have been a doozy.

Inflationary pressures from the COVID-19 crisis have been compounded by the surge in commodities prices sparked by the Russia-Ukraine war. In the US, the Consumer Price Index hit 9.1% year over year in June—its highest since 1982. In fact, most major economies are dealing with inflation highs not seen in decades.

Healthcare has long been considered one of the most reliable defensive sectors—an effective portfolio buffer when equity markets turn volatile.

For decades, globalization has been on an inexorable rise, a key pillar fueling economic growth, driving inflation and yields down, bolstering corporate profit margins and supporting an upward climb in market valuations. Over the past few years, though, cracks have started to develop in globalization, as populism has seen a resurgence and trade wars have erupted.

With central banks tightening aggressively to beat down inflation, growth is beginning to slow—and the risk of recession is ticking higher. Historically, creditworthiness has soured when growth slows. But instead of bracing for a wave of downgrades and defaults, we think income-seeking investors should embrace the high-yield corporate bond sector.

Equity investors are anxious about the future after sharp market declines in the first half of 2022.

Spiking inflation, rising interest rates and growing fears of a US recession dominated global equity markets in the second quarter. While the outlook is very cloudy, it’s important to evaluate what types of strategies can help investors in an economic downturn.

US energy stocks are outperforming consumer discretionary stocks by the widest margin in more than 30 years. Does this mean surging energy prices will trigger a deep freeze in consumer spending?

Lifetime income solutions are high on the wish lists of defined contribution (DC) plan participants, with the certainty of a guaranteed lifetime income stream ranking as the top feature in our surveys over the past decade.

Have COVID-19 and geopolitics hastened the decline of globalization and other tailwinds that drove an era of exceptional returns? That's the question on the agenda in the next installment of the Disruptor SeriesSM from AllianceBernstein. Our experts tackle the big issues facing capital markets and look closer at the challenges to a powerful mix-including globalization, automation and demographics-that fueled profits and drove capital markets for decades.

Market headlines in 2022 have been dominated by inflation, tightening monetary policy, ongoing volatility and the Russia-Ukraine conflict. To get ahead of client concerns, financial advisors need to develop creative ways to turn difficult conversations into opportunities to build confidence. A clear and concise presentation on the capital markets can help solidify and restore lost credibility—and trust. Hear from Ken Haman, Managing Director, and Scott Tatum, CIMA, CFP, Director, as they discuss seven steps to organize a compelling capital-markets narrative.

Investors are shifting their focus from runaway inflation to slowing global growth as central banks hike rates to tame price pressures.

Growth stocks are under acute pressure as rising interest rates change the dynamics that drive equity valuations.

High inflation and the consequences of attempts to curb it are a top concern for today’s investors.

Do these statistics surprise you?

For several years, the largest US technology and new media companies were widely seen a cluster of similar stocks.

Looking for a tactical way to de-risk your portfolio? You might consider rotating a portion of your equity allocation into high-yield bonds.

Three powerful forces have unleashed a volatility storm in stock markets this year.

Modern slavery is a lucrative business that can’t exist without the financial system.

An unfriendly macro and market landscape is making life harder for investors today, with traditional core bonds coming up short on income. In our view, focusing on generating efficient income is an effective approach to tackling the challenge of mixing the key building blocks of rates, credit and growth.

With the world facing inflationary and geopolitical hurdles, economic growth is poised to slow. In this environment, investors in growth stocks must identify companies with the right features to overcome headwinds to earnings.

COVID-19’s resurgence in China has cast doubt over the government’s ability to meet its 2022 growth target of around 5.5%, which officials affirmed in March, before the scale of the latest outbreak became clear.

Many companies are rethinking supply chains amid disruptions from the war in Ukraine and the pandemic.

As of this writing, Russian forces are reorganizing in eastern Ukraine, and fighting is well into its second month. Supply chain disruptions continue, gas prices are reaching all-time highs, inflation has become a constant concern, and some analysts are predicting that the Fed will aggressively raise rates.

Environmental, social and governance (ESG) ratings are a popular way to search for companies that meet specific criteria in a responsible investing agenda.

High-yield bonds have a reputation for volatility.

China’s currency, the renminbi (RMB), remains strong even though many of the factors that have driven its performance over the last two years have weakened.

Supply-chain disruptions are testing companies around the world.

Transitioning to a net-zero carbon economy* is vitally important, and corporate bonds will play a critical role in the transition.

The highest inflation in 40 years has spurred more investors to search for assets that can help offset its bite.

Russia’s power on the world stage is supported by its vast reserves of oil and gas.

How can investors gain confidence that an equity portfolio is invested in companies that are really helping to address climate risk? Focus on a company’s carbon handprint, which measures the positive impact, or carbon avoided, by using its products.

Dormant for many years, inflation has returned with a vengeance—fed by pandemic-related challenges and easy-money policies. Inflation may end up as a temporary condition or a longer-lasting issue, but in either case it’s top of mind for many investors today. Hear from AB experts as they tackle inflation in the inaugural edition of the Disruptor Series by AllianceBernstein.

European markets have been turbulent because of the region’s proximity to the war in Ukraine and economic links with Russia.

When I meet with a financial advisor in her office, I look around and think, “What do the displayed items tell me about you? Who or what is in the pictures, and why do they matter?”

At its March 10 meeting, the European Central Bank (ECB) surprised the market by announcing an acceleration of its tapering program—wrapping up securities purchases earlier than anticipated.

European investors are struggling to understand new rules designed to confirm the environmental, social and governance (ESG) credentials of portfolios.

When Russian president Vladimir Putin sent troops into Ukraine, he unraveled decades of efforts to cement peace in Europe after the Cold War.

What happens when you combine the tipping point of two deflationary forces—globalization and demographics—with a pandemic, epic supply-chain disruptions and an invasion in Europe? Inflation of a magnitude not seen since the 1970s. Some of the contributing factors may be transitory, but not all, and lingering inflation is likely to be higher than before. How should bond investors adapt?

Russia’s invasion of Ukraine has shocked the global economy, in particular by fueling further spikes in energy and commodity prices. The new inflationary catalysts will have differing effects on monetary policy moves because regional economies are starting from different places, which will determine their ability to withstand higher commodity prices.

More securities labeled as environmental, social and governance (ESG) bonds are being issued by a wider variety of companies than ever before.

Sustainable investment funds are mushrooming. Assets under management in Morningstar’s global sustainable fund universe surged to $2.75 trillion at December 31, 2021, nearly three times the pre-pandemic level, according to Morningstar.

Environmental, social and governance (ESG) factors are all important to the sustainability of an investment.

Given the dominance of inflation in today's capital markets discussion, it should be no surprise to anyone watching this video that one of the most common questions I get is, “How do I inflation-protect my portfolio?” And that's what we're going to focus on today: what to think about when you're thinking about inflation protection.

Equity markets were jolted in January amid growing concerns about macroeconomic threats.

Millennials often say their biggest challenge is being lumped into one category, as if everyone’s needs and aspirations are identical.

The prospect of rising interest rates has clouded the outlook for global bond investors in 2022, but it’s not all bad news.

Recently, euro-based investors have been able to access higher-yielding US dollar bond markets while hedging their currency risk at low cost.

From the advent of electricity to the adoption of the internet, technology has often been a catalyst for cost reduction.

The COVID-19 pandemic looked set to batter the world’s banks—and yet banks’ balance sheets are now the strongest they’ve been since the global financial crisis (GFC).

The surge of the coronavirus omicron variant has implications not only for broader asset-class allocations but also for macro exposures within asset classes.

For China, the year ahead holds special political and economic significance.

Most investors need little persuading that emerging markets offer exciting opportunities.

One of the things that we like to do is to make sure that our investments are very specific—that they have intentionality behind each investment.

As we go into 2022 and ’23, we’re going to have an economy that’s going to be quote-unquote normal.

Rising inflation is troubling bond investors worldwide, but European bond markets will likely experience comparatively weaker inflation pressures and stronger central bank support.

For emerging-market debt (EMD), 2022 is shaping up to be a contest of conflicting forces.

Few investors would’ve anticipated the very strong returns we’ve seen, particularly in the US market.

Global equities surged in 2021 during a year full of surprises.

High-yield investors should actually root for rates to move higher, rather than lower. And that’s because if rates are moving higher, it means the economy is doing well and companies are generating a lot of earnings, and therefore their credit risk is actually coming down. Which is a really good thing for us as credit investors.

The Federal Reserve responded to stubborn inflation pressures in the US economy by doubling the pace at which it’s tapering its QE purchases. It also ramped up the number of rate hikes it expects will be needed to bring the economy back into equilibrium in the medium term.

The world’s central bankers have had to manage competing priorities during the COVID-19 era. Now that COVID-related threats to global economic growth look to be receding, the risks from higher inflation are becoming more prominent in their thinking.

The United Nations Glasgow Climate Change Conference, also known as COP26, concluded in November with 200 nations signing the Glasgow Climate Pact (GCP), an agreement that could accelerate climate action and drive big carbon cuts.

Commodities, by virtue of their fungibility and broad uses, have infiltrated nearly every facet of human life, making the world enormously reliant on their ready availability.

Real estate stocks posted a sharp recovery this year, despite disparate effects of the pandemic on different property types. Improving trends in key US market segments show how investors can gain confidence in property stocks as a diversifying source of solid long-term returns and an effective hedge against inflation.

As investors and companies increasingly seek to address the risks of climate change, there is growing debate about the use of carbon offsets in achieving net-zero emissions. We think there’s room for a measure of offsets to achieve carbon neutrality, provided best practices are followed.

So, when you think about the end of 2021, and looking forward into 2022, we’re reasonably optimistic about the backdrop. Growth should be set up pretty well for 2022.

Impact investing, which seeks to make a direct—and measurable—social or environmental impact while generating a financial return, has historically been synonymous with the private debt and equity markets. But that ignores the hugely important public market of municipal finance.

With profits from forced labor estimated at US$150 billion a year, some companies in global portfolios could be unwittingly associated with modern slavery. The good news: businesses and investors can help tackle the problem—individually and through collaboration.

In high yield specifically, investors tend to think about it as a risky way to play fixed income. But we like to turn that thinking on its head, actually: that you should think about it as a way to de-risk your overall portfolio rather than to re-risk your fixed-income side.

As one of the fastest-growing bond sectors, emerging-market (EM) corporate debt has become too big to ignore. With US$2.7 trillion outstanding across more than 600 companies, it’s now larger than the entire EM sovereign sector and is equal to the US-dollar and euro high-yield markets combined.

Equity investors focused on a low-carbon strategy needn’t compromise on company fundamentals. When quality and compelling valuations are equally considered, joining the global fight against climate change and generating strong return potential can work hand in glove.

The revolutionary technology of synthetic biology is poised to make a profound impact on the way a vast array of products are manufactured, from lab-grown meat to cosmetics to biodegradable packaging. Yet investors are paying relatively little attention to the huge business potential.

Inflation and rising interest rates have prompted many equity investors to reconsider technology and high-growth companies. But this inflationary environment is different, and so are the companies best poised to rise above it.

One advisor whom I coach uses a color-coded checklist with every client to track which areas of a financial plan have been completed and which tasks are pending. It’s a brilliant way to shift a client’s attention from portfolio performance to the larger, more important elements that make up a holistic financial plan.

It’s not uncommon for stakeholders in large organizations to have different views on the meaning of ESG and the importance of its pillars in defining organizational success. That’s understandable, and in fact, diverse perspectives can be a source of strength when making investment decisions.

After years of anxiously watching for inflation, it’s here. Unfortunately, what many expected to be a short, COVID-19-induced visit has turned into an extended stay, thanks to robust demand and a snarled supply chain. The question now is does the supply chain pose a threat to our economic outlook?

Investors are sitting on a mountain of cash as household reserves now stand four times higher than pre-COVID-19 levels, while money market reserves rose to all-time highs. However, a trifecta of concerns from rising interest rates, persistent inflation, and an evolving US tax picture are making investors reluctant to deploy that cash.

Renewed impetus behind China’s goal of “common prosperity” has raised concerns that Beijing plans a redistribution of wealth that could hurt growth and investment. The reality, however, is more nuanced—and a good deal more positive for China’s long-term growth ambitions.

Soaring energy prices highlight the challenges of shifting toward renewable power sources. The continuing need for oil and gas during the transitional phase raises complex questions about balancing environmental needs and social concerns on the journey to a net-zero world.

Inflationary pressures are threatening corporate profitability. As third-quarter earnings season winds down, we’re gathering intelligence to identify companies that will have advantages sustaining quality earnings and margins amid rising prices.

When rates are rising, investors need portfolio protection. But it’s no time to sit idly in cash and wait things out. Every day spent on the sidelines means income and opportunities lost. A passive, set-it-and-forget-it investing approach isn’t ideal either. Buy-and-hold laddered portfolios tend to lock in low yields that disappoint if the market begins to offer more.

Investing is about to get a lot harder, with thinner return streams and potential pitfalls from inflation, rising rates and market volatility dominating the landscape. In our view, the solution is to build a portfolio that has better up/down capture. Getting that balance right is the challenge for every investor—and requires three main elements: better beta, efficient structure and targeted alpha. Each element can create a favorable return sequence and be even more powerful in combination.

Download AB’s guide to get our views on how to design a portfolio around these elements in the post-pandemic environment.

When I look at the opportunity, it’s all about how well corporate America has done in terms of increasing profit margins. We’re at record levels now, so the revenues have come back, but all the costs haven’t come back. And that means tremendous earnings growth. That’s the positive.

After decades of saving for a comfortable retirement, plan participants eventually face the question of how to create an income stream from those savings. Most aren’t sure how to do that, even though income is the main reason they’re saving in the first place...

Well, on the surface, it's been a very solid year for the second year in a row. But under the surface, it's been unusually volatile.

When the history of COVID-19 is written, the pandemic period will be seen as more than just a health and economic crisis. Both contributed to a social reckoning, with a growing focus on inequality around the world, while the intensifying global climate crisis has added new and unpredictable threats.

The shift to electric vehicles means major changes across the supply chain and involves multiple ESG challenges. As the auto industry strives to institute sustainable practices, investors need to engage with governments and corporates to encourage and accelerate the process of change.

Interest rates are rising, and bond investors are worried about the potential impact on their portfolios. But they’re not entirely at the mercy of the markets. 

Concerns about China’s slowing economy have focused on issues affecting property and manufacturing. But these are only part of the story. Investors seeking a fuller understanding of the risks and opportunities need to take a broader perspective.

The strong economic and market trends of the first half of 2021 wavered during the third quarter. The coronavirus delta variant caught up with the US at the height of the summer, just as vaccinations slowed and concerns grew that inflation might flare and persist.

In business as in life, a healthy sense of self-awareness is often the first step to meaningful change. Companies that are conscious of their flaws and eager to address the root problems offer a source of solid return potential for equity investors who identify the turnaround stories early.

Inflationary pressures are mounting, based on evidence from the recent earnings season. The question for investors is, which companies can pass on those costs to help protect profit margins?

The US high-yield market has staged a strong comeback since its downturn at the onset of the COVID-19 pandemic and—despite historically tight spreads—fundamentals for credit continue to improve. Along with a strong global economic recovery, credit spreads are getting positive tailwinds from declining default expectations, falling levels of distressed debt, and improving access to capital.

The US Federal Reserve will soon slow its open market purchases of fixed-income securities. These purchases have served to keep rates low and liquidity flowing, but as the post-pandemic economy heals, it’s time for the Fed to taper. As they step back from buying, who is going to step forward?

Executive pay is a powerful motivating factor. But investors need to consider whether executive pay incentives are fully aligned with the goals of the business. We find that companies with meaningful ESG goals embedded in their executive compensation schemes tend to have a better understanding of the ESG factors that are material to their business, use specific key performance indicators (KPIs) and are more likely to achieve them.

With COVID-19 still a top employer concern, protecting workers’ health and well-being naturally comes first. But the pandemic’s impact isn’t limited to only physical and mental health: financial wellness is also ailing. The crisis has exacerbated the problem, but it’s not exactly a sudden occurrence.

In December, the European Central Bank (ECB) is likely to announce the retirement of its Pandemic Emergency Purchase Programme (PEPP) next March. But how will the central bank manage this process? And what will this mean for euro-area bond yields?

One of the most crucial components of investing in commercial mortgage-backed securities (CMBS) is assessing the underlying collateral value. But what if investors are disregarding risks that threaten a property’s very existence?

Major central banks are exploring digital currencies, which seem likely to become a mainstay of tomorrow’s economy. As policymakers wrestle with the many moving parts of digital dollars, euros and yuan, their decisions will shape the next dimension in national currency—and could reshuffle international currency leadership.

COVID-19 has increased inequality and aggravated social problems across emerging market economies, fueling populist pressures—but several emerging countries share features that make them particularly vulnerable. Assessing key environmental, social and governance (ESG) metrics can help identify potential pressure points.

Disruptions and dislocations associated with COVID-19 mean current economic data may not be a reliable guide to the future. But by turning to the past, we find compelling evidence that inflation regime change is accelerating.

A single-minded approach to price stability is under threat as policymakers start to focus on what are—arguably—more pressing concerns.

Defensive stocks are often misunderstood. In recent years, even when they have delivered strong and steady earnings, returns have disappointed.

Emerging-market (EM) stocks have hit a rough patch, but shares of smaller companies have held up well.

Much of the volatility that has recently shaken China’s credit markets has been associated with government interventions.

What You Need to Know
Municipal bonds are the cornerstone of many portfolios, but efficiently navigating today’s complex, fragmented and ever-changing muni market can be overwhelming. Unfortunately, many managers research, evaluate and trade municipal bonds like it’s 1995, missing out on opportunities because they can’t find them in the chaos. The right technology can change that.

Technology is advancing at a rapid pace, exerting downward pressure on prices

Many investors, perhaps scarred by 2013’s “taper tantrum,” are focused on the likelihood that the Federal Reserve will start reducing its bond purchases in the next few months.

Today’s complex, fragmented, fast-moving muni market is rapidly outpacing the capability and capacity of traditional portfolio-construction methods.

As equity style winds shift, investors are still debating the merits of growth versus value stocks.

What we’ve seen this year is an exceptionally high rate of earnings growth across markets, but that’s not going to persist.

As the summer progresses, US vacationers are out in force while the European and Asian holiday scene remains relatively subdued.

Central banks are being forced to address many challenges—inequality, climate change, and debt management to name but three. 

There’s considerable uncertainty in today’s municipal market. Questions persist about the likelihood of rising interest rates, inflation that may not be transitory and the impact on municipalities once the benefits of fiscal stimulus fades. Active bond managers have many decisions to make and need to be nimble in a changing landscape. What’s next for municipal bonds, and how can trading and portfolio management technology help investors navigate this changing environment?

Inflation has been on the rise recently, raising concerns about long-run inflation and its impact on the spending power of those who can least afford it—investors approaching or already in retirement.

China’s regulatory crackdown on education and tech companies led early this week to a dramatic sell-off that started in Chinese stocks and extended into offshore Chinese currency and credit markets.

Chinese stocks have tumbled amid a regulatory crackdown on education and technology companies.

Hang on to your hat.

The US high-yield market has seen a strong comeback since its panic-driven downturn at the onset of the COVID-19 pandemic.

Market crises and macroeconomic recessions typically create fertile ground for value stocks to outperform in a recovery.

In 2010, 68% of the companies in Fortune Magazine’s Global 500 were domiciled in Group of Seven (G7) countries, compared with 17% in the E20* emerging-market (EM) countries.

Many investors with exposure to the Chinese renminbi (RMB), having enjoyed a strong rally in the second quarter, are worried that policy uncertainties could hurt the currency’s short-term outlook.

As the world convalesced from the pandemic, stocks advanced in the second quarter and earnings rebounded across sectors.

Bond investors are worried, and who can blame them?

High-quality companies are always in style. In good times and bad, features that define resilient businesses and stocks underpin consistent and solid equity return potential.

US inflation continued to soar in May, with the Core Consumer Price Index (CPI) up 0.7% month over month and 3.8% year over year—its highest annual rate in more than 25 years.

Japanese equities have long been overlooked by many global investors.

Environmental, social and governance (ESG)-linked bond structures have become very popular in investment-grade bond markets.

With the post-pandemic US economy on the mend, a new threat has emerged: inflation.

Disappointing returns for healthcare stocks through the market’s recovery from the pandemic have raised concerns about the sector.

With the US economy accelerating and price pressures rising, investors have started wondering when the Federal Reserve will start to wind down, or taper, its current QE asset purchases—a pillar of accommodative monetary policy since the global financial crisis.

Passive equity portfolios continue to gain popularity, but some investors might not know that a small group of outperforming stocks have driven most of the gains in recent years.

We’re optimistic that environmental, social and governance (ESG)-linked bonds will help create a better, more sustainable world.

Municipal bonds have held up well this year, despite rising interest rates and inflation. Munis’ long-term outlook is strong too. What accounts for their outperformance in today’s environment?

Widespread lockdowns have resulted in record output declines and soaring debt across the euro area. But the political response to the COVID-19 crisis may be positive for the European integration project—and for euro-area bond markets.

Global indicators continue to signal a sharp business recovery from last year’s COVID-19 pandemic lows. While inflation expectations are increasing as a result, business improvements offer multi-asset investors good reasons to remain tilted to equities for the next stage of the recovery.

Retirement planning has evolved from a singular focus on savings to ensuring that account values provide income for life. Multiple generations of DC plan participants are concerned that they’ll outlive their retirement savings, and they’re turning to plan sponsors for solutions.

After a strong rally for value stocks in recent months, some investors are wondering if the rebound will continue.

As the US economy continues to reopen, economic growth is accelerating in line with our above-consensus forecasts.

Developed-market (DM) household savings recorded a significant gain last year, with an increase equivalent to 10% of combined gross domestic product (GDP).

Paradigm shifts are driven by creativity and innovation. Innovation is attracted to and stimulated by inefficiencies in a big, lucrative marketplace, such as financial services. Recently, our industry has seen a growing number of innovations in how financial-services products are delivered to consumers.

Many US technology companies use stock compensation to help align workers’ performance with shareholder interests.

US small-cap value stocks have enjoyed considerable success since value stocks began to outperform growth in October 2020.

Investors are reassessing which types of companies will thrive in the next stage of the recovery amid the recent rebound of value stocks.

Planning for retirement has historically been focused on saving as much as possible.

Global stocks rose in the first quarter, but volatile trading patterns reminded investors that the road to normal will be bumpy.

Today’s market environment taps into bond investors’ primal fears.

As US inflation expectations grow, many investors are concerned about the potential impact on stocks.

Across the industrial sector, low-carbon investing naturally leans toward renewable energy opportunities, like wind and solar power.

Companies globally are racing to reduce their carbon emissions. But what does it really take to achieve ambitious green targets?

Our brains have a set of built-in shortcuts that influence us every day.

It’s been a long time since investors have had to worry about inflation.

US core inflation likely will be volatile during 2021, as underlying economic forces continue to rebalance from the pandemic.

Our crisis dashboard includes signals from three areas: 1) public health, 2) the consumer sector and 3) financial markets. By pulling big data from traditional sources (earnings growth and gross domestic product, for example) and nontraditional sources (like Google Trends and Glassdoor), we can create a better mosaic of the road back.

The exit from the pandemic will be bumpy. Defensive stocks with attractive valuations can help provide balance through an uncertain recovery.

The recent selloff of US growth market darlings reflects increasing questions about whether their growth potential still justifies exceptionally high valuations. Away from the froth, growth investors can still find solid return potential in quality companies with profitable, sustainable business models.

As more plan participants worry about retirement income security, demand for guaranteed income solutions is growing—and plan sponsors are pondering the options.

Italy’s new prime minister, Mario Draghi, has a well-earned reputation for turning around difficult situations. But can he reverse Italy’s relative economic decline? And what does his program mean for Italian bond yields?

Hydrogen’s potential as an energy source is attracting renewed attention. It may take 20 years or so for the potential to be realized. But the effects are likely to be felt within the planning horizons of most long-term investors—a good reason to start thinking now about the investment implications.

The energy sector is beginning to adapt to the realities of climate change. Who is best positioned for the future?

As COVID-19 vaccines roll out and resrictions lift, a US economic rebound could lead to tighter Federal Reserve policy and higher yields. Municipal bond investors may worry about how rising yields could hurt their portfolios.

We expect US core inflation to surge in the months ahead, as comparisons to low price levels of a year ago cause sizable fluctuations. Ultimately, supply should respond to recovering demand, bringing inflation down and facilitating easy Fed policy.

Despite questions over financing the European Union’s (EU’s) new Green Deal, the green transition is now under way.

Investors have parked record piles of cash on the sidelines amid concerns about valuations and volatility. But short-term safety comes at a price. By defining long-term goals, investors can put idle cash to work despite uncertainty about the path to recovery.

Having strongly underperformed the wider stock market in 2020, high-dividend stocks have shown early signs of a rebound in recent weeks.

The pandemic has accelerated an evolution in bond trading, and it is already making a difference for investors—if bond managers have embraced tech-enabled trading.

The GameStop drama that has rattled US stocks reflects the growing power of individual investors to shape market events. But there are lessons for traditional, long-term investors, too. When markets ignore fundamentals, redoubling a focus on quality is the best way to produce consistent returns while reducing volatility.

The probability of more fiscal relief from Congress has risen—good news for the US economy and a boost to our growth forecast. While risks remain, and it’s too early to talk about the pandemic in the past tense, we’re optimistic the economy can return to more normal footing soon.

As inflows to sustainable equities break new records, here’s what investors should look for to identify portfolios that align with their responsible investing goals.

It may seem shocking, but a simple trip to the local store to pick up fresh produce or clothing could enable human exploitation. For investors, those same connections can exist within their portfolios—and it takes more than a passive effort to root them out.

As China begins the year of the Ox, many investors are wondering whether another bull run is possible in 2021. Given that last year’s rally was extremely narrow, we believe many parts of the market still offer pent-up recovery potential.

For European banks’ stockholders, 2020 was a year to forget. But bank bondholders enjoyed positive returns and may overcome COVID-19 challenges again in 2021, backed by solid balance sheets and supportive regulatory conditions.

Global stocks rebounded sharply from the coronavirus market crash in 2020, but the ride was rocky. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns through the recovery from COVID-19.

Emerging-market stocks rebounded in 2020 even as the COVID-19 pandemic spread globally. As vaccines and other favorable conditions unfold, investors have good reasons to consider EM equities in 2021 while strategically considering their potential risks.

Municipal bond issuers’ financial health and resiliency—which helped in 2020—should support opportunities for active muni investors in 2021.

Small-cap US stocks rebounded sharply in the fourth quarter. Yet the recovery may still be in its early stages—particularly for smaller-cap value stocks—as pandemic risks recede and earnings drivers kick in during 2021.

Credit markets have staged an epic rebound from the depths of March 2020. But in a low-growth, low-yield world, we believe there may be more room to run in 2021.

Now’s the time to put the challenges of 2020 behind us and start the new year with a fresh perspective. While we can’t predict the future, we can break away from old behaviors and be intentional about our choices in the new year.

Emerging-market sovereign debt has rebounded sharply off the lows, but this hard-hit sector offers attractive yields and compelling growth opportunities to discerning investors.

The events of 2020 remind us that life is complicated and fragile and that being prepared really does matter. Could this inspire you to become a character of great significance in the lives of your clients because of how you comfort, lead and inspire them?

Recent SOE bond defaults signal Beijing’s willingness to let markets price risk more accurately.

Income-seeking investors have been frustrated in recent years as US dividend-paying stocks underperformed. But companies that offer strong payouts in a sustainable manner can help investors source surprisingly robust streams of income and equity returns.

Low interest rates and massive stimulus-fueled debt raise investor concerns about potential long-term fallout. But when the cost of capital is this low, it revs up funding for innovation that ultimately fills the pipeline with robust opportunities, especially in technology.

With a greater level of clarity than we’ve had since the COVID-19 pandemic, we’re getting a better sense of how the US economy might shape up over the next few months, into 2022 and beyond. We see three distinct stages over that time frame.

After a difficult winter, we expect the global economy to rebound strongly next year. But structural headwinds remain. Will the post-pandemic bounce trigger a durable and broad-based global reflation?

Healthcare stocks are once again in focus as a result of promising news of COVID-19 vaccines. But investors shouldn’t hunt for the pandemic’s panacea. Focusing on business fundamentals is a much better way to find healthcare stocks with long-term potential than searching for the next big drug.

Global investors have been watching US President-Elect Joe Biden closely for clues as to how his administration intends to conduct relations with China.

Despite lingering uncertainty about corporate earnings growth and economies around the world, global stocks have rebounded from the COVID-19-driven downfall in March. But even following that bounce back, international stocks have lagged their US counterpoints for over the last decade. Could they be reaching an important inflection point? If so, how are astute investors casting a broader net to pinpoint the right companies outside the US?

Join us to hear from an interactive panel of investment experts from AllianceBernstein, who will cover:

• Key catalysts that could signal improved performance outside the US
• The benefits of going abroad, including less-crowded trades, lower valuations, and sourcing different alpha
• Why consider a high-conviction approach for international stock selection
• How benchmark-agnostic strategies can help identify forward-looking thematic opportunities

As investors look for signs of a return to normalcy from the coronavirus crisis, they have a dizzying array of indicators to choose from. We’ve assembled a group of signals, with the help of big data, that may point the way.

Two recent developments could have big implications for the US economic outlook: general elections and news of very promising progress on a COVID-19 vaccine. To understand the ramifications, we have to distinguish near term from longer term.

States face revenue shortfalls from COVID-19 costs and shutdowns. We look under the hood to assess how some of the most indebted states are faring.

Defensive equities are usually found in sectors that have withstood market shocks, such as utilities and real estate. But as COVID-19 shakes up investment conventions, companies with intangible assets are being more appreciated for their volatility cushion.

A fresh round of lockdowns means a difficult winter lies ahead for the euro area. But three factors caution against excessive pessimism.

The roller-coaster ride of 2020 still has a few twists and turns to navigate. But the massive policy response to the COVID-19 pandemic brought a quick, though incomplete, recovery. With volatility expected to continue, where can investors look for opportunities?

There have been plenty of headlines exploring what the November US elections might mean for the economy and markets. But it’s just as important to look at what they might have in store for defined contribution (DC) and other retirement vehicles, which more Americans than ever rely on.

Why is it hard to get clients to take preventative action to protect themselves from real and measurable risks?

As Prime Minister Suga begins his administration, the message is one of continuity, but Abenomics may need a reboot after COVID-19. We examine what Suganomics may mean for Japan.

Emerging-market debt has rebounded sharply off March lows, but attractive yields and compelling opportunities persist. We provide a roadmap for what may lie ahead.

Even if this US election has a bigger impact on markets than in the past, we would advise against building an investing strategy based on a potential political outcome for several reasons.

Euro-area countries were struggling to achieve growth and inflation even before the coronavirus pandemic. Now global lockdowns and trade disputes have compounded their problems. Still, we believe euro fixed-income markets offer active investors attractive opportunities and worthwhile income.

Investors should consider many angles when evaluating what active managers can offer through a global crisis and an indefinite period of uncertainty.

Escalating trade tensions between the US and China could affect Chinese corporate bonds, but not all credits are vulnerable.

It seems like ages ago that our firms closed their doors and we scrambled to set up home offices. We weren’t sure what challenges lay ahead, and the market took our breath away in those first intense weeks. But while we don’t like having to cope with a disaster, human beings tend to do well in a crisis and to adapt quickly to massive disruptions.

US third quarter GDP was better than expected, though our updated economic forecasts still show a quick but incomplete recovery. Over time, this should give way to a more gradual, lengthy path back to “normal.” But there are a lot of moving parts.

European equity markets are still struggling to overcome the effects of the pandemic. But diligent investors can find surprising investment candidates.

Can bonds continue to play defense and provide income when yields are at historic lows? We think so.

Equity markets advanced in the third quarter but pulled back during September. Market moves were dominated by a small group of giant US stocks. How should investors react?

Investing in businesses that strive for a better climate through decarbonization doesn’t necessarily assume a lower bar for performance. Just the opposite. Besides contributing to a healthier environment, low-carbon equity investing can also offer attractive return potential.

Guiding Defined Contribution (DC) plans through economic cycles is challenging enough without harsh headwinds from a global health crisis. But more plan sponsors are getting invaluable expert help to navigate through current challenges while keeping a long-term perspective.

What will a Trump or Biden win mean for munis? From taxes to infrastructure, the candidates differ—sometimes dramatically—on policy.

Recent history suggests that low—and even negative—yields don’t eliminate the offset to risk assets provided by government bonds.

Videoconferencing is becoming routine, mundane and overused. Here are tips for looking and sounding your best on a video call so that your audience stays engaged and you can rock that call.

Investors don’t often pay much attention to corporate culture. But cultural norms can make the difference between success and failure, especially for growth companies.

Investors are eager to buy bonds that help create a better, more sustainable world. Here’s how to navigate the evolving landscape.

Global stock markets seem to be defying the reality of recessions this year. Despite recent volatility, we think market gains for the year are more rational than perceived, given the powerful impact of stimulus and low rates on stock valuations.

The Brexit negotiations are growing more adversarial with no signs of agreement on key issues. The most likely outcomes are now the hardest and most disruptive Brexit scenarios—leading to further potential weakness for the UK’s currency.

The best reason to conduct a virtual meeting is to motivate some kind of action. This means that a well-managed meeting is always moving toward a clear and specific close. There are six steps to a meeting’s flow that will help you “keep your close on.”

A wave of policy support to stabilize the world economy has left developed nations with a growing public debt load. What path will governments follow to address the issue? History offers several debt-reduction templates.

Sovereign bonds have long been the prime defensive asset for multi-asset portfolios. But in today’s extraordinary market conditions, should investors make more extensive use of other defensive choices?

Equity investors in emerging markets (EM) typically focus on large-cap companies. But allocating to smaller companies can help broaden an EM allocation by providing a different mix of exposures to opportunities across countries and sectors—and can bring potential for higher added value.

Equity investors in emerging markets (EM) typically focus on large-cap companies. But allocating to smaller companies can help broaden an EM allocation by providing a different mix of exposures to opportunities across countries and sectors—and can bring potential for higher added value.

With US elections about two months away, investors are intensifying their focus on the presidential and congressional contests. Historically, political transitions haven’t had much impact on the economy and markets, but this time could be different.

Many investors are looking for emerging signs of a return to normalcy from the coronavirus crisis. While there are many indicators to choose from, we’ve assembled a group of signals, with the help of big data, that may point the way.

As technology stocks of all shapes continue to surge, many investors are questioning whether they’re now overpriced. But even at high valuations, we think the tech landscape is still dotted with long-term growth potential.

During the coronavirus downturn and rebound, US growth stocks outpaced value stocks by a record margin. Now growth stocks seem expensive, but that depends on how you look at it.

Capital markets have rebounded from their COVID-19-induced lows, but impacted industries have lagged substantially. That pessimism may be overdone in some cases, creating opportunities for multi-asset investors to exploit dislocations.

Investors flock to municipals to meet safety, income and after-tax return goals. But investors should consider how they gain exposure to the asset class.

Interest rates are at extreme lows around the world, and they’ll likely stay low for some time. Does this mean US-based investors should revert to a US-only bond strategy?

One of the biggest differences between live and virtual meetings is the importance of visual illustrations. Virtual interactions are the perfect medium for using pictures to support a sales presentation. In fact, illustrations can make the difference between a successful encounter and a waste of time.

In a world of uncertainty, many investors choose to diversify, rather than investing in a concentrated strategy. But this year, a portfolio of just the five largest US stocks would have significantly outperformed. So, is there a way to reduce risk and to capture long-term growth in a concentrated portfolio?

Cut off from meeting in person. Reliant on videoconferencing. Trying to stay interesting and relevant. Advisors are searching for ways to be useful to clients and prospects. Here are four techniques that can help.

Cash may still be king, but cashless commerce is rapidly becoming the new king. The revolution in digitalization of commerce is already generating growth in transaction value of roughly 24 percent per year over the last three years.

Many investors are looking for emerging signs of a return to normalcy from the coronavirus crisis. While there are many indicators to choose from, we’ve assembled a group of signals, with the help of big data, that may point the way.

Growing challenges to banks have weighed on recovery hopes for value stocks. But our research of Japan’s experience and global value trends suggests value stocks don’t necessarily need financials to turn the corner.

US household income has held steady, but only because of stimulus checks and enhanced unemployment benefits. As Congress debates the shape and scope of the next package, economic data show a clear need for more help sooner rather than later.

Government bond yields have tumbled globally but China’s yields have risen to pre-COVID-19 levels. The RMB hasn’t yet reacted to the favorable rate difference, and we think bond yields are likely to decline moving forward—a favorable landscape for China bonds.

As more companies tap government stimulus funds, questions are being asked about how shareholders may be affected. To answer these questions, investors must assess how corporate behavior and stakeholder engagement will shape a company’s long-term outlook.

Several equity factors diverged significantly from their typical performance patterns during the COVID-19 crisis. By understanding how factor returns behaved in this market correction relative to their historic norms, investors can not only prepare for future volatility but also take advantage of short-term market dislocations.

US Investment-grade corporate bond issuance has rolled past US$1 trillion so far in 2020. What are the long-term effects of this explosive borrowing?

Virtual meetings significantly reduce the role of social instincts, and attendees often feel the freedom to multitask or disengage. However, by taking a proactive approach, you can keep virtual meetings on track.

Investors increasingly want to align their financial goals with a commitment to improving the lives of others. Two recent projects showcase how municipal bond investors are making an impact.

After four days of intense negotiations, EU leaders have reached agreement on a €750 billion recovery fund to help repair the economic damage from COVID-19. It took several concessions to EU creditor countries to break the deadlock. As expected, total grants in the deal have been reduced to €390 billion from an original €500 billion proposal.

Higher-income assets underperformed in the second-quarter rebound. But that also means there’s pent-up potential in income-generating assets that may begin to show in later stages of the recovery.

In emerging markets, some industries and countries are in better shape than others. And many businesses have the right qualities to benefit from structural changes now and long after local conditions improve.

In addition to its tragic human toll, COVID-19 triggered the sharpest recession in recent history, and efforts to control its spread have transformed the way we work, the way we shop and how we connect with others. We think these changes will last awhile—with implications for asset allocation.

The Fed’s recent stress tests raised concern about solvency risks to US banks. But as second-quarter earnings season begins, investors may find that some banks are much more resilient than expected.

Virtual meetings are inherently different from face-to-face encounters, largely because they eliminate many of the social obligations that deeply influence interpersonal behaviors. Experience with conducting virtual meetings in a variety of contexts has revealed that they are typically harder to manage than live meetings.

Low yields plus rising defaults seemingly leave little ground for bond investors seeking safety or income—or both. But for investors who remain flexible, those objectives aren’t as distant as many think.

Reaching a mutually beneficial Brexit deal has so far been beyond the reach of UK and European Union (EU) negotiators. Now that COVID-19 has struck, can they avoid a damaging split?

Global equities rebounded sharply in the second quarter. But new risks are looming as companies and countries count the costs of the pandemic.

Even with today’s low yields, credit barbell strategies can still meet their objectives of downside protection, upside participation and efficient income.

The five largest US growth stocks now comprise more than a third of the Russell 1000 Growth Index. Investors should be alert to the risks of high benchmark concentration.

One simple statistic can help high-yield investors gauge how their bonds may perform down the road.

Economic fallout from the coronavirus crisis was especially hard on real estate, mostly from misperceptions that the asset class is dominated by hotels, malls and office parks. But a look inside shows a diverse group of sectors that are more pandemic resilient than investors may think.

Companies are coping with diverse challenges through the coronavirus crisis. Investors who integrate environmental, social and governance (ESG) factors into their research can gain important insights on how businesses are adapting—and how future return potential might be affected.

Many investors are looking for emerging signs of a return to normalcy from the coronavirus crisis. While there are many indicators to choose from, we’ve assembled a group of signals, with the help of big data, that may point the way.

Value stocks have underperformed in the coronavirus crisis. Yet some higher-quality companies are now trading at valuations that underestimate their ability to withstand shorter-term stress—and their longer-term recovery potential.

The COVID-19 crisis poses a big challenge for employers to rationalize the benefits they offer to employees. With budgets stretched and every dollar scrutinized, tough choices loom on DC plan offerings, in addition to programs like financial wellness.

The new normal—working from home and curtailed travel—is painful for extroverts. Conducting virtual meetings using videoconferencing makes people seem less real, and extroverts crave the physical presence of others. While you may prefer to be face-to-face with your clients, this blog may convince you of the benefits of virtual meetings.

Municipal bonds—especially higher-quality issues—bounced back after a rough March. But not all munis have rallied. We see potential among overlooked mid-grade issues.

Target-date portfolios that use carefully chosen defensive equities are best equipped to protect from coronavirus market turmoil and volatility in general.

COVID-19 is triggering a new era of central banking. We believe this will play out just as powerfully in the euro area as elsewhere.

The COVID-19 pandemic has significantly impacted an advisor’s ability to prospect for new business. But with turbulent markets, clients may be willing to consider a new financial relationship. Recognize this opportunity and offer an immediate, problem-solving approach: the Financial Uncertainty Preparedness Checklist.

The Fed gave its updated economic outlook this week, but not the additional policy support markets were looking for. We think this was a misstep...but one we hope will be corrected if the outlook doesn’t improve.

The Fed gave its updated economic outlook this week, but not the additional policy support markets were looking for. We think this was a misstep...but one we hope will be corrected if the outlook doesn’t improve.

Municipal bond defaults have been rare, making them a remarkably resilient investment over the years. The reasons range from the very services muni issuers provide to the fundamental characteristics of municipalities.

As the coronavirus crisis reinforces technology’s fundamental role in our lives, investors can find sources of risk reduction and growth potential in companies that have become digital utilities enabling global networks.

The term “new normal” now widely applies to everyone’s lives. One facet is attending virtual meetings. It’s our view that web-based conversations are here to stay because they are better than live interactions. Here is a list of 10 reasons why your clients prefer virtual meetings.

European banks’ additional Tier 1 securities should survive a short bout of the coronavirus. But even in a prolonged pandemic, the risk/reward trade-off might be better than perceived.

Emerging markets (EM) are at a crossroads. The impact of COVID-19 aggravates pre-existing challenges. But it also enables those EM economies that respond effectively to create better conditions for the future.

Chinese stocks have been resilient this year because of relatively modest earnings downgrades amid an early recovery from the virus-induced shock.

Today’s bond yields are extremely low, and some multi-asset investors may be struggling to rationalize exposure to interest-rate driven assets such as government bonds. But past experience suggests that they can still be effective diversifiers over the near term, even at low yield levels.

As the COVID-19 crisis and the challenge of the economic recovery process continue, it’s critical to understand how to care about our clients without caring too much. Don’t risk your own well-being and become unable to help those who need you.

Tensions between the US and China are flaring up again. With pressure mounting on Chinese stocks listed in the US, including those widely held in emerging-market portfolios, investors need to consider how to prepare for the mounting risks.

Chinese stocks have been resilient this year because of relatively modest earnings downgrades amid an early recovery from the virus-induced shock.

COVID-19 has supplied the catalyst for a secular change in the role of central banks. Providing governments with ammunition to fight the virus is now the overriding goal, and this means keeping bond yields pinned close to zero for the foreseeable future.

As fixed-income markets have started to recover following the massive selloff and liquidity crunch in March, credit risk-transfer securities (CRTs)―agency mortgage securities not guaranteed by Fannie Mae and Freddie Mac―have been slower to do so. Investors are wondering: Where do CRTs go from here?

Small-cap stocks were hit harder than large-caps in the coronavirus sell-off. But given the extreme market dislocations, select smaller companies with innovative advantages could offer investors a surprising source of diversification for the uncertain times ahead.

Economic fallout from the pandemic is devastating US retail. But companies that were already adapting well to seismic changes in the industry should prosper over time.

The Fed continues to dismiss the idea of negative US rates but the market keeps pricing them in. We don’t expect negative rates: in our view, the market is using them as a proxy for Fed measures that may be needed but aren’t yet identified.

Many human decisions are driven by impulses known as heuristics, such as the simple-and-familiar bias. When mental energy is depleted, as during a crisis, advisors may employ this bias to select investment solutions that are easy to explain (simple) and that they’ve used before (familiar).

China is further along the coronavirus curve than much of the rest of the world. What does its path to normal look like, and what are the big unknowns?

Asian businesses are gradually rebooting after governments quelled the initial wave of the pandemic. Conditions may be improving for regional value stocks that were beaten down before and during the pandemic.

As an advisor, you have protective instincts, so COVID-19 is likely to activate your emotions and push your thinking toward extremes. Your brain is probably searching the world for dangers and building a decidedly negative worldview. Psychologists call this catastrophizing: seeing the future in a negative light. This reduces your ability to sort available information.

The turmoil in the first quarter of 2020 reinforced the importance of rebalancing in target-date design. As we see it, a finely tuned, systematic approach can help keep emotions in check and risk under control—benefits that translate to many types of multi-asset solutions.

Healthcare stocks usually are defensive for a portfolio during market downturns. Given the extent of the pandemic’s impact, more questions are being asked about the sector’s resilience.

Many investors are looking for emerging signs of a return to normalcy from the coronavirus crisis. While there are many indicators to choose from, we’ve assembled a group of signals, with the help of big data, that may point the way.

The onslaught of the coronavirus forced the Federal Reserve and lawmakers to take desperately needed measures. The US economy will eventually recover, but the effects of these drastic policy decisions will be felt for a long time.

As an unprecedented number of US companies suspend earnings guidance, equity investors should rethink the overly precise game of predicting short-term estimates.

Coronavirus-led economic uncertainty is forcing downgrades, defaults and fallen angels. Could this spell opportunity for credit investors?

The coronavirus has exposed the European Union’s (EU’s) fault lines. For now, European Central Bank (ECB) bond purchases should hold things together. But ultimately, national governments will need to take some tough decisions to secure the EU’s future.

The spread of the COVID-19 virus has blindsided conventional risk models. By understanding what went wrong, investors can develop a more forward-looking approach to risk management that considers multiple scenarios for a highly uncertain market environment.

Many investors are looking for emerging signs of a return to normalcy from the coronavirus crisis. While there are many indicators to choose from, we’ve assembled a group of signals, with the help of big data, that may point the way.

Oil prices briefly turned negative this week. What does it mean for energy bonds? And why does the long view for oil matter more?

Following the market meltdown, investors seeking to bolster defensive positions could end up finding them in some unusual places.

The decline in US economic activity from social distancing measures and forced shutdowns is likely to be bigger than our initial guess. While we expect a recovery once the coronavirus crisis eases, we don’t have enough information yet to dimension it.

Under the CARES Act, the Fed has expanded supports for corporate bonds. Could this bring a regime shift in volatility for global credit markets?

Companies with strong ESG credentials will play an essential role in addressing the dramatic changes being triggered by the COVID-19 pandemic.

Working from home is the new normal for most of us these days. Are you taking mindful action to take advantage of opportunities presented by today’s environment?

The bear market is challenging defined contribution (DC) plan sponsors to reinforce timeless investing principles while also conveying new rules that bring relief to participants. Good communication practices are a key ingredient to achieving success in both these areas.

Most of the bond market sold off in March as the coronavirus crisis intensified. But as past crises have shown, indiscriminate selloffs can generate big opportunities.

As risk assets tumbled in late February and March, it intensified the focus on risk management: How can multi-asset strategies defend against turbulence while positioning for an eventual rebound? The answer: Be ready to adapt—and to do it quickly.

Following these guidelines can help equity investors navigate the uncertainty created by the COVID-19 pandemic when selecting stocks and positioning portfolios.

The historic US fiscal aid package isn’t a quick fix, but it provides welcome relief and will make it easier for the US economy to rebound when the coronavirus crisis eases. More important, it shows that Congress is willing to act swiftly and dynamically.

In the midst of a historic crisis, it’s hard to see through the fog. But investors who ask the right questions now will be able to identify companies that can make it through.

Policymakers cannot avert a big near-term economic hit. But they can build the foundations for recovery—if they take the right steps now.

Postcard from Vietnam: On a research trip to Vietnam before the coronavirus crisis, our analysts discovered what it takes for manufacturers to outsource successfully.

Television remains one of the most influential distributors of information and ideas, yet the majority of Americans distrust the reports they get from TV. This distrust may stem from the fact that there is a lot of fear in the news today. How can advisors help clients make sense of the news and help them get back on rational footing?

Are municipal bond issuers vulnerable to the COVID-19 pandemic? We assess key sectors, from states to hospitals to airports.

Europe has changed swiftly from spectator to front-line combatant in the battle against the coronavirus. The potential damage from its spread is severe, but European policymakers are reacting robustly to the threat.

The current market outlook is bleak. But if the US and Europe take the right steps and follow China’s playbook, we believe the world could ultimately follow the Chinese markets’ road to recovery.

With markets reeling from concerns over the coronavirus and plummeting oil prices, the US Federal Reserve took another step Monday to shore up markets. The Fed has more in its toolbox, but fiscal policy may also be needed to fill a gap in the US economy.

European investors were recently reminded how tricky it is to evaluate a company’s environmental, social and governance (ESG) credentials. Tesla’s plans to chop down a forest to build a manufacturing facility for electric cars in Germany reinforced the need for independent research and engagement to assess the risks and opportunities created by ESG controversies.

The coronavirus is dominating the news and sparking panic in markets. We believe the options for policymakers are clear—but will they implement them?

This week’s Fed rate cut helped steady financial markets reeling from the expected impact of the coronavirus on the US economy, and we think more cuts are coming—in March and beyond. The economy should rebound in the second half of the year, though at a lower full-year pace.

After recent sharp declines, US stock valuations look more attractive, especially compared with bonds. While the current volatility is unsettling, heightened uncertainty over earnings because of the coronavirus crisis could create opportunities for long-term investors who distinguish between winners and losers from the shock.

As China’s leaders scramble to contain the COVID-19 epidemic, the global community braces for impact to China’s people, equity and bond markets, and economy.

Investors who want bigger returns from their high-yield strategies should consider a global approach.

As China steps up efforts to achieve technological independence, there may be a silver lining for some global companies in the sector.

Merger arbitrage can create highly attractive returns. But there’s a big problem: hedge-fund managers typically take 30%–50% in fees. We advocate a smarter way to approach merger arbitrage investing, with much lower fees.

The Wall Street Journal criticized ESG portfolios earlier this month for being dominated by big technology stocks. But we think technology stocks are integral to a responsible investing agenda when chosen as part of a well-defined process targeting companies that foster environmental, social and governance (ESG) improvements.

Growing fears about the coronavirus have hit Chinese stocks. While markets will remain unstable until China gets the outbreak under control, equity investors should revisit lessons from previous epidemics and consider the potential longer-term effects of the current crisis.

Late in 2019, Chile, Colombia and Peru saw an uptick in political turmoil that was unusual, given that they’re perceived as politically stable countries with “market-friendly” policies. With several key elections on tap in 2020, we’re watching closely for potential risk flare-ups.

One way for high-yield investors to gauge how their bonds may fare down the road has been with this simple, accessible and historically accurate tool.

At long last, the UK has left the European Union (EU). But now tough and unpredictable negotiations lie ahead. In our view, the probability that they end in a negative short-term economic outcome is greater than 50%.

Growing fears about the coronavirus have hit Chinese stocks. While markets will remain unstable until China gets the outbreak under control, equity investors should revisit lessons from previous epidemics and consider the potential longer-term effects of the current crisis.

US healthcare is always a political hot potato, and volatility is expected to rise as the November elections approach. But investors can find good opportunities in the sector in companies with strong long-term business drivers that are relatively immune to political noise.

ESG investors, take note: a controversial new bond format that links a company’s sustainability goals to its bottom line could be a game changer.

With US equities trading at relatively high valuations, earnings growth will be essential for investors to generate returns in 2020. That’s a tall order in today’s environment. Finding standout companies with sustainable growth potential will be especially important.

Late-cycle markets can unnerve high-income investors. But we see ways to generate a healthy level of income while potentially decreasing overall portfolio volatility.

As we enter a period of lower growth globally, investors have given higher valuations to companies that can achieve consistent growth. This seems logical, but are we in danger of overpaying?

The outlook for the muni market is favorable for 2020, but investors should be prepared for twists and turns. Staying flexible can help keep investors on track.

As we enter a period of lower growth globally, investors have given higher valuations to companies that can achieve consistent growth. This seems logical, but are we in danger of overpaying?

A virus is spreading across China, causing disruption, severe illness and even death. In addition to the tragic human cost of an epidemic, widespread disease can cause significant macroeconomic damage. We estimate the potential impact of the Wuhan coronavirus on China’s GDP growth.

The last decade produced great performance across most asset classes. But in the 2020s, we expect investment market returns will be lower and risk harder to manage. Looking forward, a disciplined multi-asset approach will be especially valuable to identify opportunities and help mitigate setbacks.

In a low-yield, late-cycle environment, the right mix of credit securities and government bonds can help fixed-income investors boost income and tame volatility.

Even as global stocks climbed in 2019, market volatility persisted. By some measures, lower-volatility stocks now look quite expensive. But in fact, high-quality stocks that can help protect portfolios can be found at reasonable prices, if you know where to look.

The US and China formally signed a phase-one trade deal Wednesday after several months of negotiations. We see the deal as a near-term positive for markets—but it also leaves the thorniest issues between the two countries unresolved.

So as we stand today, the opportunity in value stocks is quite significant. The spread between value and growth stocks is as wide as it’s been at any point in the last almost 20 years.

With bond yields near record lows, can fixed-income markets generate solid returns in 2020 without forcing investors to take too much risk? From a fraught geopolitical landscape to a global slowdown, we assess today’s biggest challenges—and opportunities.

Global stock markets rallied in 2019, defying political and macroeconomic uncertainty. Will investors be as fortunate in 2020? Since many risks remain, maintaining style diversity and finding investing themes that are detached from volatility drivers will be important ingredients for equity allocations.

With the likely passage of the SECURE Act within the new government appropriations bill, annuities will gain safe harbor protections. This—and presumed cost concerns—has been a sticking point making some plan sponsors hesitate to offer a lifetime income solution in their defined contribution plans.

The US Fed held rates steady in December and plans to continue that stance through 2020. But a lot can happen to change the Fed’s mind—after all, it entered 2019 expecting to hike rates and ended up with three cuts. What does 2020 have in store?

Now that the US and China have agreed to begin easing trade tensions, the fog over China’s markets is starting to lift. Investors should consider Chinese equity opportunities that have been overlooked because of tariff fears.

After a decisive victory in the UK’s general election, Prime Minister Boris Johnson has a strong mandate to “get Brexit done.” But the eventual shape of his Brexit deal is still far from clear.

Environmentally minded investors, take note: a controversial new bond format that links a company’s sustainability goals to its bottom line could be a game changer in building a more sustainable future.

Investors continue to question whether US equity valuations are too high, particularly for growth companies and versus other global markets. But standard valuation metrics don’t tell the whole story. Understanding the cost of capital can provide essential insight on valuing stocks.

After a series of disappointing initial public offerings (IPOs), private and public equity investors are becoming more discerning about earnings. And for good reason. Profitable companies outperform by a wide margin over time, even among high-growth companies, which often post losses early in their lifecycles.

Many investors are somewhat skittish about illiquid alternatives because they’re worried about tying up their money for a long time in an investment that they can’t trade or exchange easily. However, illiquidity may actually work to investors’ advantage.

As big tech and media companies face growing concern about the power of their businesses, more questions about environmental, social and governance (ESG) issues are likely to be raised. Social and governance issues deserve greater attention amid increasing regulatory scrutiny of industry giants.

Black Friday is around the corner. Will US shoppers head to the mall? Or are malls out of fashion for good? The debate about the retail apocalypse is playing out in a single bond index.

European stocks have outperformed US equity markets in recent months, after several years of underperformance. Is this the start of a longer trend? It’s too soon to say, but some unfolding developments could signal a reversal of fortune for a long-unloved asset class.

The Fed has signaled it is unlikely to cut interest rates again in December, but we expect further rate cuts next year. We believe the Fed has not yet done enough to protect the economy against headwinds. While we don’t forecast a US recession, we think additional monetary policy easing will be needed to stabilize growth.

It’s easy to overlook government bonds today with yields so low. But their interest-rate sensitivity, or duration, can provide vital protection when riskier assets such as stocks and credit struggle.

Today, ESG issues may be more prominent in investors’ minds and approaches, but quality investors have been asking these questions for some time.

Investors are increasingly asking whether the macroeconomic growth cycle still exists, and, if so, where are we in it? The answers to these important questions have real implications for the way equity investors should think about their portfolios.

There’s growing evidence that private equity markets are beginning to overheat after several high-profile IPO flops. Investors in stocks should pay attention because private funding troubles are also a very public market affair.

It’s easy to get spooked in late-cycle markets. But we think there’s a way to de-risk your portfolio and still generate a decent level of income—no magic spells necessary.

US value stocks staged a strong recovery in September after an extended period of underperformance. While value slipped again in early October, we’re monitoring four signals that might indicate whether we’re on the cusp of a bigger value rebound.

The market is moving very quickly. I can’t say that there’s one aspect that we’re looking at, but one thing I will tell you that I do believe is that we’re a Tweet away from—fill in the blank. It’s just the world that we’re living in at this point.

As defined contribution (DC) plan sponsors know, the US Department of Labor recommends considering both packaged and custom target-date strategies when choosing a solution. As we see it, packaged solutions can learn a few things from fully customized target-date solutions, which are generally used by large and megasize plan sponsors.

Alternative investments have the potential to enhance portfolio returns and reduce risk, but it isn’t easy to determine which alternative works best—and how much of it to own. To get accurate answers, it’s necessary to look beyond traditional asset-allocation approaches.

As economic cycles enter their later stages, investors sometimes find that they’re taking too much risk to generate income. There’s a strategy that can help—and we think now is the time to use it.

Despite the municipal market’s strong year-to-date rally, an aging US expansion and low yields continue to top municipal investors’ concerns as we enter the home stretch of 2019. When conditions are evolving and visibility is limited, active and flexible strategies can help balance risk and reward.

Global stocks advanced in the third quarter, but investor sentiment wobbled amid puzzling signals on macroeconomic growth and monetary policy. Political uncertainty and a cloudier outlook point to more volatility, which should compel investors to intensify their focus on stock fundamentals.

As the People’s Republic of China (PRC) celebrates its 70th anniversary, manufacturing data shows that factories in the world’s second largest economy improved marginally in September, despite the impact of the ongoing U.S.-China trade war.

The Fed cut rates again and indicated that one more cut should be enough to shore up growth. We think more will be needed. But will rate cuts work? And if not, what else can the Fed do?

US state attorneys general recently stepped up their scrutiny of big tech’s business practices. With corporate mammoths likely to be in the crosshairs of regulators for some time, equity investors should consider looking beyond the titans for opportunities in the sector.

What sources of market returns can withstand late-cycle uncertainty? By identifying the right ingredients, we think investors can create an allocation with the potential to overcome new challenges and perform well over the long term.

Want to reduce overall portfolio risk without giving up on income? Consider high-yield bonds.

When we think about how much leverage is being used right now by corporates, I reflect on the old saying: “It’s all fun and games until someone loses an eye.”

If clients have income needs, then it makes most sense today to look at a balanced approach.

In today’s highly uncertain market environment, investors in US stocks are paying a premium for companies with high-dividend yields. But how much is too much—especially if interest rates stop declining? Stocks with resilient high-growth profiles deserve a closer look.

With global markets growing more volatile, we’re often asked what we think are the most underappreciated risks that investors face today. One in particular stands out: currency risk—especially for non-US dollar–based investors.

When it comes to implementing a secure lifetime income solution for a defined contribution (DC) plan, sponsors may balk at the task of evaluating insurers and different types of retirement income options. But fiduciary help is already available, with additional services and innovations on the way.

Trade tensions—and the volatility they bring—are forcing investors to think about new ways to generate low-volatility income. A mortgage income strategy that balances high-quality securities with historically high-returning ones can help.

Washington legislators have crafted some substantive support for defined contribution (DC) plans to offer secure income solutions for participants. The Secure Act, currently under Senate review, may be a key component in clearing away some hurdles that have previously made DC plan sponsors hesitant to incorporate lifetime income solutions.

Plan sponsors evaluating packaged and custom target-date solutions should take a close look at the demographics of their plan participants and how they stack up against those of a “typical” plan. It’s critical information when making a glide-path decision.

Liquidity risk grabbed headlines this summer on the heels of several high-profile fund implosions. The hunt is now on to find ways to manage market liquidity risk and to protect portfolios against liquidity crunches. We’ve pinpointed three essential practices.

Investors recognize that emerging markets are at the core of the global economy and belong in a fixed-income allocation. Still, many investors are underexposed to emerging-market corporate bonds. We think that’s a mistake.

Leading US CEOs recently pledged to redefine the role of the corporation in society. But will they make good on their promises? Responsible investors need a clear way to evaluate whether a company is really making progress by doing good for both society and investors.

It’s been 20 years since a Chinese bank failed. But recent bailouts of three regional lenders have raised concerns about systemic problems in China’s financial sector. While risks have grown for China’s smaller banks, we believe that the Chinese banking system remains robust.

Rejoice—people around the world are living longer! But pause the festivities—that means they need more retirement money. To ensure they don’t run out of cash, savers need to adjust their investment strategies as their needs change, both before and after retiring.

The most closely watched part of the US yield curve inverted this week for this first time since 2007, suggesting that a recession may be around the corner. We’re not convinced that’s true.

Oil and gas producers are often seen as vulnerable to global efforts aimed at curbing climate change. But some European energy groups might become part of the solution to climate change rather than part of the problem.

Sustainable investing is often misunderstood. Many investors think a sustainable agenda limits a portfolio to a narrow piece of the market. In fact, plenty of stocks can help investors create social benefits while generating strong returns—if you know how to find them.

China’s currency depreciated this week, with the exchange rate rising to more than 7.0 renminbi per US dollar, unnerving investors worldwide. Here’s the good news: we don’t think the decline is as worrisome as it may seem.

Financial markets are focused on the ongoing trade war between the US and China—which goods and services are in play and what measures are being taken or threatened in each case. But the trade conflict could spill over into currency markets—and that’s a risk that bears watching.

Municipal bonds have had a good run since the beginning of the year, but there’s still room for additional positive performance in 2019. That’s particularly true for investors who choose active strategies with the flexibility to move money around the bond market as conditions evolve.

With the pound sliding to two-year lows, currency markets are signalling a higher probability of a no-deal Brexit. But the fallout from no deal would hurt the rest of Europe, too, and add to downward pressure on euro-area bond yields.

When people talk about Japan, they often do so in the context of ‘lost decades’ and warnings of limited growth opportunities. Nearly one-third of the population is over age 65, inflation is stubbornly low and predictions for future economic growth are not encouraging.

Global markets have taken heart from a truce in the trade war and signs of yet more monetary-policy stimulus. Easy money may well give a short-term lift to asset prices, but longer-term prospects look more challenging, especially for Europe.

The 11-year equity bull market is certainly getting long in the tooth, but several important indicators suggest we may not be at the end yet.

The recent decline in US corporate cash hasn’t raised a lot of eyebrows, but it has caused one of our equity-quality indicators to flash a warning. Since equity quality is one of the signals with a strong track record of predicting market sell-offs, should investors be worried?

When macroeconomic growth slows, investors get edgy. But the economy isn’t the only thing that drives revenue and earnings growth for companies. Some industries are poised to expand at a rapid clip even if GDP growth is subdued or decelerating.

Equity markets recovered in June as the US Federal Reserve turned decidedly dovish, coming in line with most central banks around the world. But after posting strong gains, to end the quarter close to a record high, how much more steam do US stocks have left?

Global equities advanced in the second quarter, but the path was rocky. Incoming earnings reports will provide important clues about how companies are coping with mounting challenges—from trade wars to global growth—and how investors should position.

There are many ways to apply responsible investing principles to portfolios. But some investing approaches may be more conducive to creating a portfolio with strong environmental, social and governance (ESG) qualities than others. Concentrated equities are a case in point.

What’s the long-term outlook for oil in a world shifting to renewable energy? Oil majors publicly say supply-and-demand dynamics will support the market. But their investment choices suggest that they’re preparing for a much weaker oil price in the distant future.

Trade war fears have dominated the headlines recently, but European automakers already face other serious headwinds. We believe bond investors should tread warily in this sector.

Figuring out how to use big data is the next frontier for the asset-management industry. Equity investors must have the right culture—and ask the right questions—to successfully integrate data science into research and investment processes.

When I landed in the brand-new airport in Nigeria’s capital of Abuja I was taken by the modern and cavernous nature of its terminal, a reflection of the country’s future ambitions. One of Africa’s best airports, in Accra, Ghana, also boasts a new terminal.

Earning income without taking excessive risk is a balancing act—and it can be hard to pull off in the late stages of a credit cycle. A credit barbell strategy can help investors stay on their feet.

The United Nations Sustainable Development Goals (UN SDGs) offer a good guide for investing in companies making a positive impact on society. But where do you begin? Start by drilling deeply into the SDGs themselves to identify investible themes.

The Fed left its benchmark rate unchanged this week, but also signaled a very high probability of cuts later this year. Historically, rate cuts have been a sign of trouble—typically made in response to slower growth and rising unemployment. But this time around, growth data aren’t showing much weakness. What’s the story?

Creating a sustainable fixed-income portfolio isn’t just about avoiding harm–it’s about doing good. The UN’s Sustainable Development Goals provide a road map for selecting companies that offer products and services that help the environment and create a more equitable, just world.

As global growth prospects have weakened, the world of central banking has been turned upside-down. But while the US Federal Reserve (Fed) has already hinted at a change of course, the European Central Bank (ECB) is still struggling to adapt to the new reality.

Healthcare stocks served as powerful painkillers during last year’s market declines. Yet the sector offers much more than just downside protection for investors who focus on business potential and resist the urge to predict scientific breakthroughs.

The trade war has taken a harsher turn, threatening to further dampen economic growth. We expect the Fed to respond with sizable rate cuts, but the timing and amounts are more speculative than normal. Why? Economic data haven’t yet taken a major downward turn, and there’s uncertainty over how the Fed will react.

The trade war has taken a harsher turn, threatening to further dampen economic growth. We expect the Fed to respond with sizable rate cuts, but the timing and amounts are more speculative than normal. Why? Economic data haven’t yet taken a major downward turn, and there’s uncertainty over how the Fed will react.

Investors shouldn’t avoid risk: it’s how you generate return. One solution is to find good companies that have the right risks for the right reasons and for the right time horizon. With a concentrated portfolio, you can spend more time on fewer companies, get to know them better and see if they’ve got a great runway for growth.

Modern Monetary Theory (MMT) has moved from the fringe to broader public discussion recently, fueling concern from some investors about growing debt levels. We don’t expect MMT to replace our current economic structure, but its populist-inspired underpinnings will likely have a sizable influence on policy.

Two important political developments in the UK over the last week have raised new questions about the Brexit outlook. While there’s still time for a compromise to be reached, we think the risk of the UK leaving the EU without a deal has increased.

Global value stocks have continued to underperform in 2019. But there’s a big disconnect between the weak returns of cheaper stocks and their underlying earnings profile.

The latest spike in trade tensions between the US and China raises the stakes for the G20 meeting in late June. It also has some investors questioning how China will manage growth as well as fiscal and monetary policy to keep stability through these uncertain times.

India’s financial sector can be as chaotic as a Mumbai street market. But when I recently visited India and looked beyond the noisy headlines, I felt excited about the attractive investment opportunities that were created by the liquidity crisis which started last September.

African swine fever is ravaging China’s pork supply and having a global impact on protein prices. For equity investors, the crisis serves as a reminder that even amid trade-war uncertainty, research into domestic trends can help investors access the country’s vast stock market.

The beauty of EM investing is you can find opportunities in stocks or bonds beyond the narrow focus of headlines.

Credit risk-transfer securities (CRTs) have made the US mortgage market safer by shifting default risk from taxpayers to private investors. The latest attempt to overhaul the housing finance system isn’t likely to change that.

Many equity investors want to help create social benefits while generating strong returns. Deploying a clear investment process that draws on the UN Sustainable Development Goals and integrates ESG factors in research can help investors achieve these twin goals.

European Banks have mostly been magnets for bad news and disappointment for their equity holders. But we believe other parts of the banks’ capital structure offer solid returns, backed by resilient balance sheets.

Why should emerging-market investors exercise caution in a rising market? With big unresolved challenges, we think it’s prudent to target companies with solid fundamentals and stable business models to overcome macroeconomic uncertainty and build a resilient portfolio for the long-term.

Emerging-market bonds got off to a strong start after a difficult 2018. Are more gains possible? We think so, and volatility sparked by increased trade tension may provide a buying opportunity for selective investors.

Technology unicorns are in the spotlight, with Uber’s high-profile IPO expected this week. As scrutiny of their business models intensifies, we think investors should also ask tough questions about publicly traded companies with high sales growth but scant cash flows.

Risk assets have bounced back this year after a dreadful finish in 2018, with a big assist from the US central bank. But are markets overlooking the potential for problems down the road?

Investors often ask how it’s possible to allocate capital to European stocks given the political risks that abound. We think the answer is to combine disciplined stock picking with risk-management tools that look for unintended threats to a portfolio.

The financial industry and the muni market has lulled a generation of muni investors into using only one approach: buy and hold to maturity. That was fine in the past, but everything’s changed post-2008 and it’s time for a better muni strategy.

Global stocks rebounded in the first quarter, but the ride was rocky. Even in a rising market, volatility is a clear and present danger. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns.

US inflation has been running low for some time, and key members of the Federal Reserve Open Market Committee (FOMC) are pointing a finger at the traditional policy framework. So rate hikes are on hold for the time being—and monetary policy is under the microscope.

The S&P 500 Index hit an all-time high on April 23, thanks to improving investor optimism. But for some equity investors, market highs signal a good time to reduce downside risk. Shifting a modest allocation into US high yield is an efficient way of doing just that—significantly lowering overall risk while only modestly curbing potential returns.

The market has grown less anxious about an imminent wave of bond downgrades. That’s good, because overestimating the risk can lead to missed opportunities. But the risk hasn’t disappeared, making research as important as ever.

From rising sea levels to catastrophic weather events, investors can’t afford to ignore the risks of climate change. Since many companies would be vulnerable if current climate forecasts materialize, asset managers may want to consider climate change in their equity research process and engage management teams on the subject.

The US yield curve dipped into inverted territory recently. But that’s not necessarily a bad omen for equities. There are several important warning signals—and lately the yield curve’s slope is the only one flashing red.

These are tricky days for the global economy. As growth downshifts and corporate earnings weaken, some investors are dusting off playbooks for late-cycle investing. That makes sense, but there are a few twists to today’s market conditions that may require new responses.

In recent weeks, the US yield curve has been making investors nervous again. The curve has inverted before each of the last seven recessions, and it did so again on March 22. But what does an inversion really mean for equity returns?

The European Union has given Britain seven more months to sort out its exit plans. While the chaos of a disorderly Brexit has been averted for now, we think the compromise could have some unintended consequences.

Global stocks rebounded in the first quarter, but the ride was rocky. Even in a rising market, volatility is a clear and present danger. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns.

n today’s low-growth, low interest-rate environment, investors should be patient, and look for opportunities to use volatility to get into desirable investments at the price you’re willing to pay.

Global equities rebounded sharply in the first quarter from the sell-off in late 2018. But conditions remain shaky and caution is warranted. Investors should pay close attention to policy-related risks when considering their allocations.

Signs of a recovery in emerging markets early this year have given way to worries about China’s economic slowdown and sluggish growth in Europe and Japan. But beyond the negative headlines we think many risks that weighed on the market last year have faded and the earnings outlook is relatively strong.

Many US companies have forgotten how to raise prices because they haven’t had to for a long time. In some sectors, such as retail, pricing power has been hobbled by the giant consolidated retailers, leaving other businesses unable to adequately offset inflationary pressures.

Last week’s meeting of the Federal Open Market Committee (FOMC) surprised even those who expected a dovish outcome. As the Fed wrangles with its policy framework, one takeaway is clear: don’t expect rate hikes this year—and possibly next.

As economic cycles enter their later stages, investors sometimes find that they’re taking too much risk to generate income. There’s a strategy that can help—and we think now is the time to use it.

Now that the UK has avoided (at least for now) a hard Brexit as it negotiates to extend Article 50, investors might reasonably wonder whether they can relax for a moment and take stock of the bigger picture. What sort of longer-term future does the European Union (EU) have, irrespective of the UK?

Just over a decade ago, global markets began to recover from the biggest shock in postwar history. These 10 charts show both how much has changed since then and how post-crisis market conditions may influence the next decade.

Nearly three years after the UK voted to leave the European Union (EU), the deadline for Brexit is less than two weeks away and the British government is asking for more time. While it’s easy to be distracted by the ongoing chaos in Parliament,

The US high-yield bond market has an impressive record when it comes to recovering drawdowns quickly. But how much can an investor who stays put reasonably expect to earn?

No one organization is responsible for the advancement of women, and that means every organization is. Women’s empowerment starts with education. It continues with the ability to earn an equitable living, especially in fields where women are underrepresented, and crests with women playing leadership roles at work or owning their own businesses.

Healthcare stocks served as powerful painkillers during last year’s market declines. Yet the sector offers much more than just downside protection for investors who focus on business potential and resist the urge to predict scientific breakthroughs.

After MSCI decided today to boost the allocation to Chinese onshore stocks in its emerging-market indices, global investors are likely to pump more money into the market. But watch out for crowds. Flows into China are concentrated in a small group of large-cap stocks.

A generation ago, China had little influence beyond its borders. Today, its importance to the world economy rivals the United States’. China’s role in markets is growing, too: in April, it will join a major global bond index. The future may bring a freely traded Chinese yuan and a challenge to the US dollar.

As MSCI considers boosting the allocation to Chinese onshore stocks in its emerging-market indices, global investors are pumping money into the market. But watch out for crowds. Flows into China are concentrated in a small group of large-cap stocks.

The euro area faces another challenging year, but we see a continuation of recent soft growth as much more likely than recession. The European Central Bank (ECB) is, nonetheless, now likely to delay its first rate hike to 2020, and could also implement fresh credit-easing measures.

Value investing has always been about challenging the consensus—but never more so than today. After several tough years, we’re seeing signs of a value recovery brewing. Yet fresh approaches are needed to capture the potential in today’s complex markets.

The Chinese stock market is changing at breathtaking speed and is on track to reach maturity faster than any other in history. Global investors have been reluctant to dive in, but there are good reasons to get acquainted with the companies serving the world’s second-largest economy.

How swift will the high-yield recovery be? How likely is it to be sustained? History sheds some light.

Should you be concerned that high-yield bonds didn’t predict last year’s equity market selloff? We don’t think so. In fact, we think investors should consider adding high-yield exposure to reduce overall risk.

Many US companies have enjoyed an earnings boost from premium products in recent years. But a strong sales mix may leave a company’s profitability vulnerable in the late stages of an economic cycle, when spending trends begin to weaken.

Countries and companies have been on a borrowing binge even as the growth of the working-age population in many parts of the world slows. Is a prolonged period of low growth and low inflation in our future?

Should you be concerned that high-yield bonds didn’t predict last year’s equity market selloff? We don’t think so. In fact, we think investors should consider adding high-yield exposure to reduce overall risk.

The government shutdown and temporary displacement of some workers didn’t cause the strong US labor market to miss a beat. Today’s jobs report reinforces that gains have been accelerating. That’s good news for the economy and markets.

Municipal bond investors like their muni portfolios to play the role of Old Faithful in their overall asset allocation, providing safety and income. But that doesn’t mean that the investment environment is reliably the same. How can muni investors stay on track in 2019? They can adhere to these three strategies.

With Brexit headlines dominating the European news, equity investors face an ongoing challenge. Building resilient portfolios requires a clear view of the long-term outlook for European companies that also reflects major short-term political uncertainties.

Africa’s two largest economies will hold elections this year, and there’s a good chance the outcomes will lead to slightly faster growth and higher asset prices. But rising populism and nationalism remain a longer-term risk.

Equities declined around the world in 2018, and valuations fell sharply. The risks are clearly significant—but have stocks fallen too far? With earnings still expected to advance this year, we think selective investors can find attractive entry points.

The US government shutdown is almost four weeks old, and there’s no sign that the standoff will be resolved anytime soon. How much has the shutdown impacted—and how much will it impact—economic growth? That depends on how long it lasts.

It’s been two years since our initial research on populism, and populist-inspired policies continue to advance today on multiple fronts. As we see it, investors should expect more of the same ahead—influencing everything from global economic growth and inflation to policies directed specifically at the corporate sector.

Investors are likely to remember 2018 as the end of the era of easy money, low volatility and steady margin expansion. Investing will be more challenging in 2019—and diversification will be more important than ever.

As volatility returned to global markets in 2018, return patterns for equity styles were very unstable. With more signs of turbulence ahead, investors should prepare to reduce the impact of short-term factor swings on portfolio performance.

With US stocks facing multiple risks, it’s easy to lose sight of the positive trends that could help the market recover. In 2019, investors should search for select stocks with the right attributes to produce positive surprises in a potentially tricky market environment.

The past year was a rough ride for bond investors. Will 2019 deliver more of the same?

Yes, investor concerns are swirling around China’s economy and the gradual opening of its domestic equity market, but the long-term picture presents significant opportunities for active investors.

It’s taken for granted in financial circles that lower oil prices are a boon for stocks, as they fuel an economy-boosting cycle in which money saved at the pump ultimately flows to the market. But oil prices that are too low could be too much of a good thing.

There’s no sugarcoating it: 2018 was hard on emerging markets. But as Nietzsche (and Kelly Clarkson) said, what doesn’t kill you can make you stronger. And as 2019 begins, we see many pockets of strength—and opportunity.

As expected, the Fed hiked interest rates yesterday, but we now think there will be fewer hikes in 2019 than we previously called for. Not because the US economy is in trouble, but because the Fed is changing its approach to setting policy.

The median price of a US single-family home has risen just over 40% since the last housing-market crash. While newspaper headlines may put readers on edge, our analysis indicates a gradual slowdown, not a bursting bubble—in most regions.

The media and some market observers are bracing for a blizzard of BBB-rated bonds to get downgraded to junk as the credit cycle turns. We expect it will be closer to a flurry.

Bond investing is going digital. Find out how fixed-income managers who are integrating technology into their processes will be able to move from great ideas to executed trades faster and with better results than those who stick with the analog status quo.

Recent market gyrations have many people asking: Is it time to pivot from a growth equities allocation to a value equities allocation? But that’s the wrong question. Instead of asking which style is likely to outperform, investors should be asking why they’re performing differently.

The balanced approach to income generation for fixed income has certainly been under challenge. If we look at five-year yields—early September, 180 basis points; today they’re at about 2.8%. So, 100 basis points higher means you’re going to put price pressure on a balanced approach to generating income.

Recent volatility in equity markets has certainly increased anxieties for many investors. But we believe in being prepared and ready to exploit volatility—to position a portfolio for what will drive excess performance over the next three to five years.

As we get ready to move into 2019, the macro backdrop points to a less favorable mix of growth and inflation at a time when central bank balance sheets are starting to shrink. Even if growth is simply returning to trend, the year ahead is likely to be more challenging—with populism and China looming as key downside risks.

A rapid rise in US interest rates has put financial markets on the defensive lately. Will the Federal Reserve respond by slowing the pace of its tightening campaign? Don’t bet on it.

We think populism is here to stay and that it will be a persistent part of the investment backdrop for many years to come.

What drove down US stocks this week? The answer may be the US bond market and what the shape of the yield curve is—or isn’t—telling us about the state of the economy.

First, the bad news: high-income investors should saddle up for another bumpy ride in 2019. Now the good: with challenges come opportunities—and we see plenty on the horizon for investors who take the long view.

When it comes to creating alpha, fixed-income managers that stay ahead of rapidly evolving technology will have an advantage over those that remain stuck in the analog world. But how do you assess how well your manager is navigating the changing technological landscape?

Rates are low globally. But yield isn’t the only component to consider when investing. Active US-based investors can take advantage of differences between the US dollar and other currencies to pick up a decided edge by investing in international bond markets.

US corporate debt has surged over the past decade. As rates begin to rise from historic lows, focusing on quality companies with healthy balance sheets can help equity investors avoid danger zones.

Whenever the Chinese economy slows and its stocks take a serious hit, investors have come to expect the government to unleash large-scale fiscal and monetary stimulus. Another heaping spoonful of sugar may do more harm than good this time around, however. It’s time for the ailing market to take some medicine.

With cabinet ministers resigning by the hour, it’s tempting to think that British Prime Minister Theresa May’s Brexit deal with the European Union (EU) is dead on arrival, and that a hard Brexit is now the most likely way forward. But some form of soft Brexit is still the most likely scenario, in our view.

When it comes to US high-yield bank loans, we don’t mince words: we think the risk rarely justifies the potential reward.

Recent volatility reminds us that new risks are testing standard defensive equity strategies. Portfolios that offer downside protection need to go beyond standard risk models and position themselves for changing challenges ranging from trade wars to European political instability.

A dramatic fall in oil prices, followed by a sell-off in high-yield energy bonds—is it time to worry about oil and gas companies again? Quite the contrary. The North American issuers that make up most of the world’s high-yield energy market are in a better position today than they have been in years.

After October’s sharp market declines, many investors might think US stocks look relatively cheap again. But equity valuations require closer scrutiny, and earnings metrics might be distorting the fundamental performance of businesses.

Democrats took the House of Representative. Republicans held the Senate. What should investors expect from the US midterm election outcome? In the way of policy, not much. But the new political landscape may be good for markets.

Value stocks have underperformed for years. But things may be changing. Cheaper stocks have shown signs of awakening recently, and several market forces could tip the scales in favor of value after a prolonged growth surge.

What might the US midterm election results mean for fiscal policy and financial markets? Probably not much if Democrats and Republicans end up splitting control of Congress. But a sweep by either party could lead to very different outcomes.

The intensifying global equity sell-off this week has rattled many investors. More turbulence can be expected in the short term, but the recent volatility isn’t particularly extreme in historical perspective, and long-term market fundamentals still look solid.

Retirement reality for many Americans may not be as grim as forecasters predict. Could it be better? Yes. But many retirees in our new survey see a glass that’s more than half full.

Crowded trades have become all too common in fixed-income markets. But running with the crowd is risky, particularly when it comes to illiquid assets like bank loans that may not be easy to sell during a market downturn.

The digital revolution took its time getting to fixed income, but today it’s transforming the investing landscape. Already, major advances in technology are helping early adopters gain unique insights and act faster in markets where speed and alpha are increasingly and inextricably linked.

US Treasury yields have risen in response to strong economic growth. In the first week of October, the yield on the 10-year bond surged to its highest level in more than seven years. The question is: Do yields have more room to run?

Emerging-market (EM) stocks fell in the third quarter and continued to diverge sharply from developed-market equities. While it may be too soon to buy into the weakness, investors should watch for signs that could herald a quick rebound.

With the midterm elections looming and an executive order that underscores President Trump’s interest in how Americans save for retirement, it’s increasingly possible that Congress could approve substantive retirement reform in the coming weeks.

The revised NAFTA deal relieves uncertainty for Canada and avoids a possible Mexican barrier to ratification. But what does it really mean for the three countries involved—or for trade tension with China?

Will Democrats retake the House of Representatives in the US midterm elections this fall? Will it matter for your investment portfolio if they do? Probably not so much, although a Democratic sweep of both houses could be more disruptive.

When it comes to the official US short-term interest rate, the Federal Reserve now appears to be on autopilot, with three more quarter-percentage-point increases likely by mid-2019. But after that, things should get more complicated.

Harnessing the potential of Big Data will be a major factor in the future of healthcare. And some of the greatest innovations in the sector’s future may not come from companies in healthcare, but from technology companies.

When it comes to US high-yield bank loans, we don’t mince words: we think the risk rarely justifies the potential reward.

Investing in companies that have favorable ratings on environmental, social and governance (ESG) issues has become increasingly popular. But investors might do better targeting companies with poor ESG ratings and a clear commitment to mend their ways.

At long last, fixed-income investing is entering the digital age—and investors should pay close attention to what their asset managers are doing to keep up. From better pricing to better solution design, the digital revolution that’s transforming the fixed-income management landscape can lead to a host of benefits.

Equity investors in the emerging markets (EM) have suffered significantly as a result of the escalation of the Turkish crisis. But a closer look at the EM index reveals that not all emerging markets are in crisis mode.

President Trump’s most recent executive order creates the potential for significant changes in how private sector retirement plans operate.

From the US-China trade war to the ongoing Brexit negotiations, global investors are grappling with a wide array of unpredictable events. Yet with the right approach, equity portfolios can confidently cope with the next bout of market uncertainty.

Investors in emerging-market (EM) stocks have taken a big hit as Turkey’s crisis has escalated. But a closer look inside the EM benchmark suggests that the entire developing world isn’t broken.

Investors tend to think of floating-rate bank loans as the cure for rising interest rates. But our research suggests that a rising-rate environment has historically been the worst time to buy loans.

While many investors in healthcare stocks may try to focus on predicting scientific outcomes, we take a different approach. We look at the return on invested capital (ROIC), and that’s how we find opportunities.

China is often seen as a source of low-cost manufacturing. Yet today, many Chinese companies are building world-class brands that are overtaking global competitors at home—and are not fully understood by investors.

US stocks continue to pose big questions for investors. After nine years of strong gains, concerns about market conditions are rife. But we think US stocks are more attractive than perceived for three main reasons.

Reduced global trade may have the unintended consequence of strengthening the US dollar, raising interest rates and pushing down stock prices. Together with tighter Federal Reserve policy, these developments may increase market turbulence.

Asset prices have far outstripped the underlying fundamental performance of many businesses, and that may pose challenges for investors now that developed economies are beginning to normalize interest rates.

US investment-grade corporate bonds look cheaper today than their lower-quality counterparts in the high-yield market. Is this the buying opportunity of a lifetime? Not exactly. A closer look reveals there’s actually method to the madness.

The Turkish lira has dropped 35% as of August 16, putting pressure on inflation as well as the country’s debt-heavy corporations and banks. Investor jitters have spread over the past week to some other emerging markets and European banks with Turkish exposure, but we don’t expect contagion to expand much further from here.

The trade war between Washington and Beijing has tipped China’s currency onto a path of destabilization. If hostilities escalate, China may let its renminbi (RMB) fall further. For investors, that could mean more volatility and tighter financial conditions.

Many investors have started to scrutinize the shape of the US Treasury yield curve, worried that a potential yield-curve inversion would mean imminent recession. In our view, things aren’t that simple.

From steel to engines to whole cars, tariffs are shifting the playing field for automakers. Our credit analysis suggests there are no winners in this war: consumers should expect higher sticker prices, companies lower earnings and investors more volatility.

Trade war’s becoming a bigger source of concern amongst investors, particularly in emerging markets, because a lot of those economies are very trade dependent. But there’s a difference between the first-order effects, the categories that are actually under trade restriction or trade tariffs now, and what might be happening in future.

A single line chart is keeping an awful lot of investors up at night: the US Treasury yield curve. It’s been flattening steadily since the end of 2016 and is nearly the flattest it’s been since 2007. We all remember what happened after that.

US companies, lured by historically low interest rates, have taken on massive amounts of debt in recent years. As rates begin to rise, investors should beware of companies that might be vulnerable to increasing financing costs.

What we’ve seen is so many different types of strategies raise tremendous amounts of capital that are competing for performance. And many of those strategies have absolutely no connection to the underlying asset.

This letter has been a long time coming. It’s time for us to talk. Buyout funds are at your doorstep.

We answer some of today’s most pressing investor questions—from the effect of trade wars with China to our expectations for rising rates and a correction in high yield.

As trade tensions escalate, investors are flocking to stocks of smaller US companies, which rely less on foreign sales than their large-cap peers. But in some industries, tariffs could affect smaller companies in unexpected ways.

Aluminum. Cars. Solar panels. It’s hard to track the tariffs without a scorecard. As headlines continue to swirl, many investors worry about the impact on the US economy. Clearly, tariffs and trade wars hurt growth, but we don’t think the impact will be big enough to derail the economy just yet.

Headlines about the death of the American shopping mall have become so common that the phrase “retail apocalypse” has its own Wikipedia page. But this is a death wrongly foretold—and that creates investment opportunities.

Thanks to the Supreme Court’s decision in South Dakota v. Wayfair, Inc., states can now choose to levy sales taxes on online transactions with no physical retail presence within the state. Our chart shows the potential impact on state budgets.

With market returns expected to be lower going forward, target-date funds that invest in passively managed underlying components are at risk of underdelivering. We think diversifying beyond traditional asset classes and tapping alpha opportunities with a multi-manager structure can increase the chances of success.

Corporate investments are the cornerstone of future growth. Yet shareholders are often seduced by buybacks and dividends. Equity investors should always make sure companies strike the right balance between deploying cash flows for short-term shareholder rewards and strategic reinvestment.

A bond allocation is like a railroad. Credit is the locomotive that generates high returns, duration the track that keeps the train in line. Take the track away and you risk running your portfolio into the ditch. That’s why duration-hedged credit strategies are dangerous.

As the global economic cycle moves into a more mature stage, monetary policy is becoming generally less accommodative and inflation risk is up. Meanwhile, geopolitical risk has become a fixture of the global landscape. What does all this mean for our outlook at the midway point of 2018?

Summer is just beginning, but emerging-market (EM) bonds and currencies have been on a roller-coaster ride for months now. In markets, though, volatility breeds opportunity—and we still see plenty of that among EM issuers.

There’s new rumblings about an inverting yield curve ahead. Is it time to panic? Time to stick our heads in the sand? Or time to think sensibly?

With the global economy moving into its late-cycle stages, we think it’s a good time to bolster portfolio inflation protection by embracing several recently unloved investments—including natural resources and commodities.

US small-cap stocks have delivered strong returns in recent years. But value stocks have lagged the broader market. A closer look at what’s driving returns reveals some risks that deserve attention.

Private equity funds continue to attract interest, despite rising deal valuations and high levels of leverage. We think there’s a way to get many of the benefits of private equity in public markets—without forfeiting liquidity.

Fears of new threats to emerging markets have cooled stock returns after two years of hot performance. But the concerns may be overstated. The long-term risk profile of emerging markets is continuing to improve.

Volatility in yields got you down? Fearful of more rising rates ahead? Worried your bond portfolio will sink into the red? We have strategies that will help keep you dry, even if the waves get high.

Bond investors are worried about rising rates in today’s environment. Many are protecting themselves by moving to cash or other very short investments. But is their “safe” choice putting them at risk?

Turkey’s currency crisis has spooked emerging-market (EM) investors, especially amid growing concern about the strengthening US dollar. We think countries and companies in the developing world are actually much more resilient to a stronger dollar than in the past.

China’s markets are opening to the world—but be aware of the potential for unintended consequences. As more money flows into domestic Chinese stocks from abroad, more money is also flowing out of China, which may trigger volatility in regional markets.

High-yield investors bracing for a downturn in 2018 can relax. By some metrics, high-yield companies have rarely looked better. The way we see it, investors who do their homework can still profit in this environment.

Technology stocks are widely seen as powerful return drivers—with a lot of volatility attached. But surprisingly, shares of many companies that enable the technology revolution can provide solid returns and even downside protection.

US stocks have boomed for nine years, supported by one of the longest economic expansions in the postwar period. Can this growth be sustained? Much depends on how the challenges of environmental and social sustainability are addressed.

There are a lot of suggestions these days about where to get extra income, but less discussion about the cost attached to it. A diversified multi-asset approach can help—and provide additional growth potential. But how it’s designed matters.

While Italy’s bond yields have risen, investors have so far reacted relatively calmly to the rising probability of a populist Italian government. Based on the fundamentals, the potential downside scenario looms larger than markets seem willing to consider.

US companies reported stellar first-quarter profits this year. But some investors suspect that earnings growth has plateaued. Our research suggests that slowing earnings growth means nothing for stock prices.

Investors often say they’re worried about having too much high-yield bond exposure so late in the credit cycle. But many are still chasing returns in equities and other assets with even higher risk. We’ve got a better idea.

On May 14, new MSRB regulations will require the disclosure of the often dramatic markups that retail investors are subject to when buying individual municipal bonds. Will this accelerate the shift into active municipal bond management?

With volatility rising, many equity investors are thinking proactively about downside protection. But traditional safe havens may not do the job. Defensive equity positions can be found today in surprising places—like the energy sector.

As concerns about inflation spread, it’s time to gauge how different types of stocks will respond. Smaller companies in niche markets may be better positioned to cope with rising prices—especially in consolidating industries.

The US Federal Reserve decided against an official short-term rate hike at this week’s meeting—hardly a surprise. But US Treasury yields continue to climb in 2018, and not all the explanations are good news.

How do you blow a No. 2 draft pick? For the New York Giants, it was a combination of bad math and overconfidence. But at least Big Blue can take comfort in having plenty of company: investors, particularly high-yield bond investors, are prone to similar mistakes.

A Wall Street Journal blog on Wednesday warned that the emerging-market trade is under threat. But we think investors shouldn’t be swayed by short-term market moves. History shows that EM equity performance cycles typically unfold over several years.

There’s new rumblings about an inverting yield curve ahead. Is it time to panic? Time to stick our heads in the sand? Or time to think sensibly?

It’s been a rocky start to 2018 for equity markets globally—volatility has returned with a bang and February saw the first 10% market correction in a while. So, why are active managers smiling?

Rising rates are adding new risks to equity markets. Stocks of companies that are saddled with debt have underperformed recently. And leverage is especially high in sectors widely seen as safe havens.

Investing 101 tells us that rising interest rates are bad for a bond portfolio. But if you’ve got a long investment horizon, that isn’t necessarily so. We think investors should be more concerned about the end of the credit cycle than rising rates.

Should municipal bond investors be thinking about inflation protection? Without a doubt. But some inflation strategies are better than others. Choosing the right one could make all the difference.

Global equities posted their first quarterly decline in two years during a volatile first quarter. Growing concerns about rising rates, trade wars and regulation in the technology sector will require a new mindset for investors.

The active/passive debate has been raging for years, and both approaches have merit. But there’s more to the story than meets the eye. Investors who commit too much to passive—and not enough to active—could face mounting risks.

Worried about rising rates? Don’t take your money out of the municipal market and put it in cash. That could cost you.

Economic trends clearly point toward higher inflation and interest rates ahead, which will likely make capital markets more volatile. Based on recent headlines, politics seems likely to add fuel to this fire.

President Trump’s plans for tariffs on about $60 billion of Chinese imports have rattled equity markets. Investors should begin to study which types of industries, countries and companies could win or lose if an all-out trade war erupts.

Rising US interest rates could pose a challenge for target-date funds (TDFs) that concentrate on “core” US fixed-income exposure. Diversifying across a broad range of bond markets and strategies can create a cushion in a rising-rate environment.

There’s not much suspense around this week’s Fed meeting: the fed funds target rate is almost certain to rise by 25 basis points. We think it’s more important not to overlook this cycle’s endgame.

What should bond investors do when rates are rising and the credit cycle is ending? Perhaps not what you would expect. But getting this right can be critical for the health of your fixed-income allocation.

China is rapidly becoming a trendsetter in many digitally driven industries. This is turning conventional research methodology on its head. Investors should look to China to discover where technology and retail markets around the world are headed.

Passive equity strategies have seen massive inflows over the last decade, in part owing to active management’s struggles. But a closer look at the story within the story suggests that leaving active out of the equation could be leaving money on the table.

It’s human nature to want to protect your portfolio when the market takes a sharp turn. But too often, bond investors make the wrong choices when interest rates rise and credit cycles end. This can have disastrous consequences for returns.

The US corporate credit cycle is nearing its end, and the cycle in parts of Europe isn’t far behind. This can create treacherous conditions for unprepared investors. The first line of defense, in our view, is knowing what to expect.

There’s a curious anomaly in the US stock market. Shares of highly profitable companies have risen more slowly than their earnings growth has in recent years. This is an important signpost for investors in today’s complex market conditions.

Target-date funds played a big part in helping defined contribution (DC) plan participants stay invested through February’s market turmoil. And history does repeat: in the severe 2008–09 financial crisis, these funds kept many participants positioned to take part in a lengthy bull market.

Following a strong 2017, emerging-market debt (EMD) held its own in January despite a sharp rise in US interest rates. That’s no accident. Economic fundamentals have improved dramatically, leaving EMD well positioned to withstand future turbulence.

Worried about rising defaults? There are good reasons not to be. Not only do high defaults not translate into poor high-yield returns, but we don’t expect a slew of defaults in 2018.

US inflationary pressures are developing that could be destructive. Investors need to seek protection quickly. But how? For municipal investors, some inflation strategies fall short, leaving portfolios at risk.

Bond investors get anxious when rates rise suddenly, as Treasury yields have recently. But if your investment horizon is longer than a few months, rising rates are nothing to be afraid of.

Finding high-quality companies is an essential component of many equity strategies. But with revolutionary forces sweeping through key industries, what really defines quality stocks? Investors must think proactively about how to identify quality in a changing world.

Think emerging-market debt might as well be managed passively? Think again.

Market volatility has spiked recently, driven largely by growing concerns about rising inflation and interest rates. We think the volatility is exaggerated, but we’re not surprised inflation is rising—and rates along with it.

Congress may finally be inching toward an overhaul of the US housing finance system. That’s good. But getting reform right is more important than getting it done. To us, that means ensuring the government retains a clearly defined role in the mortgage market.

Global equity markets are still hurting from last week’s sell-off. Yet the renewed volatility could mark a return to reality after an unusually long period of steady gains and may even foster a healthier investing environment over time.

Should investors worry about the recent rise in US Treasury yields? If they’re high-frequency bond traders—maybe. But for income-oriented investors with a longer investment horizon, our advice is simple: relax.

The tremors that have battered financial markets recently have been nerve-wracking. But remember, the market is not the economy. Economic growth can persist even when markets decline, and that growth can eventually help to stop the slide.

Some investors aren’t very concerned about Fed policy and rising US interest rates. That’s because history has shown that emerging-market debt frequently posts positive returns even when US bond yields rise.

As the Chinese New Year approaches, investors will welcome the year of China A-shares, soon to be included in the MSCI emerging-market (EM) benchmarks. But put careful consideration into determining which funds are actually ready to join the festivities.

Investors worried about an equity correction might see low volatility as a sign that buying options is a cheap way to protect a multi-asset portfolio. But the cost today is higher than it seems.

After a fantastic year, concerns are growing about a potential downturn in the stock markets. At times like these, it’s especially important to focus on investing strategies that can deliver a smoother pattern of long-term returns.

Market conditions may change in 2018, and that’s good for income-oriented investors. Yes, interest rates are rising and some assets look expensive. But there are still plenty of horses to ride in this race.

Fake news. It’s pervasive these days. And it’s no longer exclusively a problem for politicians, journalists and Facebook. It’s made its way into the capital markets too, particularly in areas of major global economic and financial impact.

As 2018 gets rolling, markets don’t have great expectations for Fed interest-rate hikes. Based on futures pricing, roughly two small increases are anticipated this year. We think there will be more.

After a record 2017, private equity funds have $1 trillion to deploy. The Financial Times reported this week that the buyout industry is raising more money than it can spend. As new risks surface, we think public equity portfolios with the right strategic mindset can deliver similar benefits to investors.

Is the end of quantitative easing (QE) a big deal? Might tax reform provide an added boost to the US economy? Should investors brace for more volatility in 2018? Yes, yes and yes.

Products and companies with sustainable competitive advantages and low capital requirements often make for attractive investments, provided they’re acquired at the right price. So where does this leave blockchain?

Investors seeking floating interest-rate exposure and high yields are increasingly turning to credit risk–transfer securities (CRTs), a fairly new type of mortgage-backed bond. But could US tax-code changes hurt the housing market and, by extension, CRTs? We don’t think so.

They are the primary objectives of municipal bond investing: Safety. Income. After-tax return. But the market doesn’t always provide the ideal environment, and the coming year looks to be no exception. How can muni investors avoid getting knocked off course in 2018? They can adhere to these five strategies.

Changing market conditions over the last five years have taught us a few things about managing risk. The most important lesson? Delivering downside protection constantly requires refining and adjustment.

As the new year begins to unfold, the environment for risk assets is still benign: the global economy is strong, monetary policy is accommodative, and volatility is low and steady. At this point, we don’t see excesses developing that could change that.

The Wall Street Journal published an article on January 7 challenging the safety of municipal bonds as “not [being] the reliable bet they once were.” While its headline may startle some investors, we’ve been endorsing this view for years. Municipal bonds simply aren’t a set-it-and-forget-it choice.

Equity markets are widely expected to do well this year after a stellar 2017. We share the optimism, but are monitoring multiple risks—from style patterns to inflationary pressures—that could deliver surprises as the year unfolds.

2017 was supposed to be the year that would put an end to modest growth, lukewarm inflation and anemic bond yields. It didn’t live up to the hype. But pressures are building, and that means volatility ahead—as well as opportunity.

Emerging-market (EM) equities posted a strong recovery in 2017 after several tough years. But it’s not too late to invest. We think there are still good reasons to add or increase EM exposure in 2018.

Emerging-market bonds delivered strong returns last year, and we think the sector has more potential. In 2018, though, investors will have to exercise caution.

By going on the ground in emerging markets and talking to people in their homes, equity investors can develop research insights about long-term, powerful trends driven by environmental and social sustainability.

As 2018 approaches, investors may want to take some time to reexamine their high-income strategies. We’ve got some advice: Be selective. Be diversified. And, perhaps most importantly, be patient.