Amid the AI frenzy are some early signs of the technology’s positive impact on productivity, raising profound implications for growth, inflation, labor markets, and asset prices.
Yield differentials across asset classes have narrowed to historic lows, reshaping portfolio risk and opportunity. In this context, diversifying allocations and locking in higher fixed income yields offers a more compelling risk-reward for multi-asset investors.
When the facts change, we change our minds. The ‘liberation day’ sell-off increased the value proposition of non-U.S. markets, particularly in Europe and Asia. This is no longer the case.