2025 stands at a crossroads. Will the impressive performance of US equities continue? Can private equity and venture capital achieve better results? What does the future hold for credit markets? We answer these questions and many others across all asset classes as we present our 2025 Outlook.
December 2024
We expect global equities to outperform bonds, as near trend economic growth should support continued corporate earnings growth and healthy risk appetite. Stock/bond correlations should be lower than the 2023–24 peak levels, even as protectionist US policy may drive global economic uncertainty higher. Global Equities Should Outperform Bonds in 2025 Kevin Rosenbaum, Head of Global […]
December 2024
We expect California Carbon Allowances (CCAs) to recover from 2024 losses as clarity on supply reductions emerges. Meanwhile, impact private investment flows will favor strategies with faster distributions and commercial validation. Additionally, headwinds for private diverse manager allocations should ease, but the overhang of emerging funds may lead to consolidation or shutdowns, challenging managers. California […]
December 2024
The trajectory of US debt-to-GDP has sharply increased in recent decades, driven by significant fiscal stimulus in response to the Global Financial Crisis (GFC) and COVID-19 pandemic. Deficit spending remains elevated compared to typical levels outside of economic crises or wars, with official estimates predicting continued escalation, particularly if Trump’s presidential campaign promises are fulfilled. […]
November 2024
In our 2023 ‘From Policy to Implementation: A Net Zero Playbook for Investors’, we laid out why and how an investor might incorporate climate goals into their portfolio without compromising its financial goals. Subsequent experience has shown us new ways to streamline the process, as investors often get bogged down in reporting and activities that […]
September 2024
Markets have been jittery as the US presidential election approaches. The macro backdrop is shifting, with slowing economic growth and ebbing inflation meaning a cycle of monetary easing beckons. At the same time, elevated valuations for a variety of assets are causing investors to reconsider narratives around themes, such as AI investment, and consider asset […]
September 2024
When investors doubt prevailing narratives, volatility tends to increase, with pricey and leveraged markets most at risk. This was the setting in July and early August as cracks formed in the narratives around artificial intelligence (AI) growth and an economic soft landing. The loss in faith amid high valuations amplified the decline as the Japanese […]
September 2024
Unsteady markets can cause unexpected liquidity demands and impede, or even undo, hard-earned long-term portfolio growth. Stress testing your portfolio can help avoid the unexpected sale of assets and may enable you to take advantage of opportunities during market downturns. Adam Barber, Senior Investment Director in the Private Client Practice, explains how—and why—a portfolio stress […]
May 2024