No. Following President Donald Trump’s announcement about reciprocal tariffs on April 2, credit spreads have widened for US high-yield (HY) bonds and broadly syndicated loans, prompting some investors to ask whether it’s an opportune time to add exposure to these assets. We believe it is too early. Spreads for most assets are merely back to […]
April 2025
With events unfolding daily (even moment to moment), it is not yet clear how the nearly $2 trillion of assets in the private equity and venture capital market will be impacted. However, given the diversity and breadth of industries across the private markets, it is clear that the impact won’t be uniform. Private company valuations […]
April 2025
The complexities of ever-changing markets present both challenges and opportunities for compounding wealth over time. Amid significant market volatility, investors should stay focused on sticking with their long-term strategy while looking for opportunities as they evolve. Shifting geopolitical alignments, the prospect of persistently high tariffs, rising sovereign debt in developed markets, and the end of […]
April 2025
No, we do not think the Federal Reserve will cut rates in the near term to rescue financial markets. However, if tariffs begin to significantly impact the real economy, the Fed will eventually act. The Fed faces a delicate balancing act: managing downside growth risks while addressing inflation pressures from tariffs. This dynamic will make […]
April 2025
Global equities tumbled nearly 8% last week following the announcement of US tariffs on April 2, with the rout continuing into Monday, April 7. Key Asian markets have declined 3%–13% on Monday, partly reflecting the delayed reaction from markets that were closed on Friday, while US and European markets experienced wild swings after opening sharply […]
April 2025
Yesterday (April 2), US President Donald Trump announced sweeping new tariffs targeting nearly all US trading partners. The policy includes a 10% baseline tariff on all imported goods and country-specific “reciprocal” tariffs of up to 50% that target nations with perceived unfair trade barriers against US products. Key trading partners such as the EU, Japan, […]
April 2025
Yes, in response to weak growth and a changing defence landscape, taking off the fiscal straitjacket should catalyse a more growth-supportive economic environment within Europe. There will be a direct growth impact as increased government investment is disbursed, some crowding in of private-sector investment, and the potential for further positive growth benefits from subsequent institutional […]
March 2025
No, investors should hold equity allocations in line with their policy portfolio weights. Trade policy uncertainty has forced many investors to reassess the trajectory of global economic growth, sending ripples through markets, and prompting US equities to enter a “correction” on March 13. Still, there are strong arguments for holding equity allocations steady. For instance, […]
March 2025