AllianceBernstein

As the AI halo begins to fade, equity investors are seeking companies that can profit from—and not just pontificate about—artificial intelligence.

Most DC plan participants pursue retirement readiness unassisted, but few grasp what’s required, according to our latest survey.

Value has been in a protracted slump versus growth for years, but it’s been undergoing something of a makeover during that time.

It’s a good time to check on consumer health.

China’s two-speed economy and the internationalization of the renminbi suggest long-term opportunities may be found amid near-term challenges.

Multi-asset strategies must adapt to a promising—but changeable—environment for generating income.

Four interlinked principles form a compelling investment philosophy for uncovering promising growth companies.

Demand growth is cooling, but evidence suggests that overall fundamentals are still sound.

Improving inflation and growth scenarios should enhance the equities and bond dynamic for multi-asset investors.

With growth moderating and inflation cooling, the US seems on track for a soft landing—as markets digest a stream of incoming information. Equity performance may be on the verge of broadening beyond a handful of stocks, and still-sizable bond yields bolster return potential.

Earlier interest-rate cuts would come as good news for the US economy.

Across Europe, ruling parties are under pressure. Bond investors should stay active and invested, in our view.

US investors often stick to US markets. But that could be a costly mistake—especially today.

Diverse stakeholders shared perspectives at AB’s Advancing Retirement Income symposium.

Private market growth in recent years has been remarkable. We think there's more to come.

There’s more to artificial intelligence (AI) than the US tech giants. Equity investors can find overlooked opportunities in emerging-market companies.

With high yields and compelling opportunities, we think the muni market looks exceptionally attractive today.

What should equity investors look for to find companies with strong economic profits, backed by clear business advantages?

There’s more evidence that growth is slowing, but it appears manageable and unlikely to lead to recession. While rate cuts have begun outside the US, we expect the Fed to follow suit by December. Political developments, especially the election cycle, are now coming into frame.

Despite narrow market concentration, we see opportunities in high-quality stocks that haven’t yet been rewarded.

If you told me at the beginning of the year that we were going to go from starting with six interest-rate cuts to now we’re hoping to get one, I would be shocked to say that the equity markets are up 15%.

Don’t miss out. Prepare to take advantage of opportunities in the second half.

The Asian high-yield market is evolving faster than investor perceptions.

Sour sentiment toward emerging-market stocks is obscuring uncommon opportunities for equity investors.

A richer dialogue between human experts and large language models may improve outcomes.

Investors need a better grasp of risk-management tools to gauge a portfolio’s strategic resilience in a rapidly changing world.

Bond investors have been looking for an approach that delivers attractive, repeatable, uncorrelated active returns. Is their wait over?

Confidence is up, but inflation and other worries offer ways to work toward better outcomes.

Today’s industrial business models offer surprising sources of consistent earnings growth.

Passive quantitative tightening could be the Bank of Japan’s next step toward normalization. Here’s why.

We think today’s market landscape calls for a different mix in multi-asset income strategies.

Higher coupons and interest payments can make premium municipal bonds worth the extra upfront cost.

From potentially brand-damaging ethical risks to regulatory uncertainty, AI poses challenges for investors. But there is a path forward.

Today’s value stocks offer a magnificent mix of quality, forward-looking profitable firms.

When it comes to investing in consumer debt, headlines may be misleading. We see opportunity.

When the economy is picking up steam, growth stocks offer the potential to capture market gains. But hallmarks of quality—including sustained earnings growth and sound underlying fundamentals—may help weather economic headwinds.

Will Americans return to the office? It may depend on where it is and what it offers.

Investors in emerging-market equities haven’t typically paid much attention to the Middle East. It’s time to take a closer look.

How can global equity investors incorporate the impact of tariffs into fundamental analysis of companies?

Technological disruption creates opportunity—and volatility. But there are ways to capture AI innovation while managing risk.

Private capital is increasingly being used to finance consumer spending.

Steady income and access to remaining assets are key considerations for DC plan sponsors.

Questions are being asked about the US managed care industry, but some businesses are equipped to rise to the challenge.

Investors have seemed transfixed lately by endless news headlines on the path of monetary policy. But fiscal policy outcomes have far-reaching impacts on long-run growth and fundamentals in the world’s economies. On that score, many regions continue to wrestle with the challenges of deficits and debt.

Active management can help investors address some of the especially tricky issues in sustainable equity portfolios.

US housing has weathered surging mortgage rates. Thin inventory and pent-up demand could create opportunity.

We think the intersection of hope and fear offers opportunity across asset classes and market segments. Tapping into it, however, requires in-depth research and a discerning eye. Waiting for a clarion bell to ring before deploying capital might leave investors a step behind.

Register now to hear from AllianceBernstein’s fixed income experts, who will tackle those questions and more.

It makes sense that longer-maturity bonds typically provide higher yields than shorter-term bonds. After all, more bad things can happen in a longer period than a shorter one, and visibility is poorer for the next 10 years than for tomorrow. Investors expect to be paid for these risks.

Emerging-market (EM) corporate bonds are too-often overlooked by investors who presume the asset class is too niche or too risky. But the aggregate fundamentals of EM corporates are stronger than those of their developed-market counterparts.

Stocks have been buoyant this year, but market conditions are still in flux. Looking at equity factors can help investors make informed judgments about how allocations are prepared for different scenarios.

If investors are detectives seeking clues for outperformance in the US large-cap equity market, natural language processing is a team of tireless assistants.

We demystify the credit risk transfer securities market.

Stronger economic growth is allowing the Fed to stay patient. That means a likely delayed start for expected interest-rate cuts.

Inflation, one of many inputs to multi-asset decision-making, cooled substantially last year, but upside surprises in early 2024 for the US and Europe have many investors concerned that the path back to normal has hit a roadblock.

Today’s technology boom is being driven by real efficiency gains, which is why we think comparisons with the dot-com bubble are misguided.

It can be a tall task to compare diverse lifetime income solutions. Applying a comprehensive framework may enable a level playing field.

Market and industry trends are shining on US financial stocks, whose fortunes might be changing for the better across diverse sub-industries.

More clarity on interest rates means more clarity on the investment outlook and the opportunities across private markets.

Understanding the social risks posed by climate transition requires discipline, nuance and a systematic approach.

Competition for electric vehicles is mounting, but demand persists. So how can equity investors capture the potential of the fast-changing industry?

From biodiversity and blended finance to a just transition and the cost of drugs, we preview the key ESG issues we’re targeting through research.

An economic soft landing in 2024 remains our base case. Inflation continues to cool, which we think will prompt central banks to follow through on rate cuts by late in the second quarter. Meanwhile, political and policy risks could rise, as over half the world holds key elections in the coming months.

Investors have been selling inflation protection in the mistaken belief that it’s no longer needed. They’ve helped create a unique opportunity.

Too many companies with solid earnings growth haven’t been rewarded in narrow equity markets. That may be about to change.

Bond investors who are overly focused on individual data points may lose sight of the bigger opportunity picture.

Geopolitical tensions in recent years have prompted companies to reconfigure their supply chains, with US firms increasingly moving production outside of China.

Many investors seem content to sit in cash. But with the market pricing in rate cuts by July, we think it’s time for muni investors to jump back in now. Here’s why.

But a bigger story has been afoot: the incredible shrinking US bank sector. Its numbers, which have withered for decades, are the lowest in over a century. The current environment should accelerate that decline, raising multi-trillion-dollar questions: Why? What does it mean for consumers and investors?

Attractive growth companies are scattered across Europe’s otherwise lackluster market landscape. Here’s how to find them.

Investments in aircraft can offer steady cash flow and a return profile that’s uncorrelated to broad market indices.

Our research shows a correlation between strong governance and higher stock returns.

Although markets expect both the Fed and the ECB to cut rates in June, macro developments could change that forecast.

Issues like water scarcity are felt most intensely at the local level. That makes it incumbent on municipal bond issuers to lead the response.

Register now to join Matt Norton, AB’s CIO for Municipal Bonds, and Municipal Portfolio Manager Daryl Clements as they discuss how to best position muni portfolios in today’s environment.

Multi-asset income strategies are becoming more popular, but some may bake in more risk than expected. The key is designing complementary exposures.

Sovereign debt levels soared during the pandemic, and countries at the eurozone’s periphery may look high risk. But appearances can be deceptive.

Despite conventional wisdom, political uncertainty doesn’t necessarily pose acute risks to the healthcare sector.

The Fed’s close monitoring and well-signaled tapering of QT should prevent disruptions to the short-term funding markets—despite converging risks.

Secure lifetime income is a top wish-list item for defined contribution plan participants, and it has benefits for plan sponsors too. But there are very different ways to deliver it.

There's been a lot of focus, especially in the media, around things like renewable energy and electric vehicles. But if you think about the challenge of reducing emissions, we're going to have to do that across a diverse set of solutions, including things like heating and cooling, manufacturing, infrastructure, agriculture.

Companies supporting efforts to create a more secure and stable world could provide equity investors with an attractive source of long-term returns.

Earnings haven’t been consistently rewarded in equity markets recently. That could change faster than you think.

A new approach to environmental, social and governance (ESG) research could ease investors’ frustrations with sourcing and evaluating the data required for objective credit analysis. Thanks to a surge in company reporting, ESG metrics can now be quantified and incorporated into analyses that were historically rooted in fundamental research alone.

Investors who stay too long in cash may find they’ve missed out.

Investors face an urgent challenge in understanding, analyzing and managing biodiversity risks.

The Fed poured cold water on a March rate cut, but the underlying message still has rates coming down—by a lot. Waiting for the starting point can be risky for investors.

Emerging-market equities have a bad rap. But a lost decade may have set up promising conditions for a recovery.

Emerging-market (EM) assets were resilient in 2023, gaining ground despite conflict in the Middle East, concerns over slowing economic growth in China, and the US dollar’s strength against other regional currencies. Now, with the Fed signaling rate cuts in 2024, the news could get better.

Many investors limit their mandates to credits rated BBB or higher. But they could tap high-quality high yield—without adding to overall risk.

Falling inflation hasn’t yet translated into good feelings among US consumers. Based on the latest data, that might be changing.

Investors who wait too long to get off the sidelines may find they’ve missed out.

Defensive equity strategies that limit downside losses but lag too much in up-markets may be missing the mark. Is there another way to reduce volatility?

Investor sentiment toward China has soured after a tough year for the economy and stock market. But the painful economic transition is also creating real opportunity.

Rate cuts don’t happen in a vacuum—staying nimble with asset allocation can help investors adapt.

Still doing “T-bill and chill”? As a strategy, rolling Treasury bills may have worked well so far this year, but history suggests it’s time for municipal bond investors to get off the sidelines and back into the market—and soon.

As equity investors hunt for opportunities, why should they consider climate-focused investing?

AB’s Chief Responsibility Officer previews areas of research focus for our Responsible Investing teams in 2024.

Private credit has in a little more than a decade evolved from a niche asset class to a key component of a diversified investment portfolio. We think it will be even more important in 2024 as banks’ reluctance to lend widens the opportunity set for investors.

Bond yields are up—that’s good news for income investors, but secular forces still pose headwinds for inflation-adjusted returns. We think an efficient way to generate income is by carefully assembling mixes of interest-rate and credit building blocks—and incorporating private-market exposure for additional diversification and return potential.

It’s hard to chart a course through equity markets in times of uncertainty. Here are our thoughts on some of the big questions on investors’ minds today.

So it was a very strong year for broad equity benchmarks around the world, but it perhaps didn't feel like a great year for many investors. There's economic uncertainty for sure.

The tide has turned for bonds. Here’s what we think is in store for 2024.

US equity market returns have been disproportionately driven by the so-called Magnificent Seven (Mag 7) stocks this year. Their dominance has created style imbalances within large-cap benchmarks that deserve closer attention from investors.

As European inflation rates converge with targets, markets expect rate cuts. But central banks are set on a decisive victory over inflation.

Investors are warming to opportunities stemming from climate change, and other takeaways from COP28.

For multi-asset income investors, adapting portfolios for equity defense, credit potential and duration exposure should be on the docket for 2024.

A secure lifetime income solution can seamlessly continue the “do it for me” structure that has helped DC plan participants save in their working years.

Investors need to understand the potential physical damage from natural hazards before they can assess their financial implications.

Generative artificial intelligence has a reliability problem. Here’s how investors can gain confidence in portfolios that deploy the technology.

Recent labor agreements in the auto and airline industries spotlight the profitability conundrum facing US companies—and equity investors.

Equities have an important role to play in a diversified allocation today, to help hedge against inflation and to navigate a lower-growth environment.

A robust growth backdrop, a key input for cross-asset positioning, benefited from pent-up demand and an accommodative fiscal policy stance.

Technological turning points in the past have taught important lessons about how to identify long-term winners from transformative innovation.

A new psychological contract is transforming the modern workplace, highlighted by an increase in collective actions and changing employee expectations.

Healthcare stocks have underperformed the global market this year. But taking a closer look under the sector’s hood reveals a more complex picture. In key industries, earnings growth forecasts are healthy and valuations look attractive.

Still doing “T-bill and chill”? As a strategy, rolling Treasury bills may have worked well so far this year, but history suggests it’s time for municipal bond investors to get off the sidelines and back into the market—and soon.

Just six metrics can effectively assess sovereign issuers’ sustainability and provide guidance for both issuers and investors.

We’ve always intended for the unique collaboration between AllianceBernstein (AB) and Columbia University to serve the broader asset-management industry. Asset owners and managers alike are eager to explore the complex issues of climate change and its potential effect on investments and investment decision-making.

Weakness in US equity markets since July reflects ongoing uncertainty about the macroeconomic outlook. Despite the concerns, stocks with quality and defensive features have performed relatively well and could help portfolios surmount shaky conditions ahead.

Following a strong first half of 2023, third-quarter returns were more challenged across almost all asset classes. One outlier was high-yield debt, which often serves as a way to de-risk equity exposures when stocks are under pressure.

The data science wave is here, and bond managers must adapt traditional investment processes to harness new technologies and amplify human talent.

The world is becoming an increasingly diverse place, especially the societies that we live in and we invest in. It’s not just about social equity that companies need to focus on diversity, equity, and inclusion; it’s really about business fundamentals.

Bonds may be back, but many clients are still sitting on piles of cash and CDs. What’s not well known is that returns for money markets and CDs could decline precipitously if—or when—the Fed cuts rates. To help clients think ahead, it’s time to start repositioning portfolios to help adhere to the old adage of “buy low and sell high.”

Register now to hear where AB’s fixed-income portfolio managers are finding compelling opportunities.

Human behavior can lead to irrational investment decisions, but a well-planned low-volatility strategy may be the antidote.

Investors are accustomed to getting a snapshot of the market by looking at the latest index statistics. But today, average spreads and yields for investment-grade corporate bonds are deceptive. A look under the hood reveals that intermediate-maturity corporates are a much more compelling opportunity than long-maturity ones.

Tight lending standards and rising yields, along with concern about an approaching turn in the business cycle, have put opportunistic credit in the spotlight. But what, exactly, does opportunistic credit mean? Here’s how we look at it—and what we think it may offer investors.

It feels like Groundhog Day, with yet another challenging quarter for muni investors. The index was down about 4%, bringing year-to-date returns to –1.4% for the year. So what happened in August and September?

Drugmakers don’t have to dominate a healthcare portfolio. Equity investors should cast a wide net across the sector to find innovation and growth.

The muni yield curve has been inverted before, but not for any meaningful length of time—until now. With yields on short-term muni bonds still significantly higher than those on intermediate-term munis, what’s an investor to do?

A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.

Slower growth and rising interest rates have tapped the brakes on private deal activity this year. But as banks continue to retreat from lending, we see plenty of opportunity for investors to pick their spots across the broad private credit universe.

In a market burdened by uncertainties, a flexible approach can help equity investors strike the right balance between short-term risks and long-term opportunities.

With yield curves still inverted, a short-dated high-yield strategy continues to make sense for return-seeking investors with a defensive mindset.

Japanese stocks have outperformed global equities by a wide margin this year. Is this a false dawn or can inflation continue to breathe life into the market?

In an era of new economic challenges, we expect value investing to trump growth-oriented strategies for investors in Chinese equities.

Good news for bond investors: yields are likely to stay higher for longer. We share strategies for making the most of this environment.

The degree of success of muni impact bonds often stems from showing issuers how they’ll be graded.

China’s growth has slowed, but the context is important—an intentional transition to a more balanced economy that relies less on investment and exports.

Even the best scientists in the world cannot reliably forecast drug-test results, so why should investors gamble? Quality businesses are key for healthcare stocks.

A balanced portfolio needs assets with strong return potential and those that may provide downside mitigation. We believe direct lending can deliver both—a potentially valuable feature, particularly in today’s uncertain market.

Now, is it an oversimplification to say that the upgrade to GDP growth is just down to Taylor Swift and Beyoncé? It is, to a degree, no matter how popular they are—and they are very popular indeed.

Although US bond yields are well above their lows of the past decade, it’s always a good idea to think globally.

The 10-year Treasury yield has climbed steadily over the past two years. But we believe fixed-income investors should be prepared for lower yields ahead.

From the dense Amazon jungle to wide stretches of Malaysian palm oil plantations, agricultural practices have been stripping the world of vital forests for decades.

Resilient consumer spending has been a pillar of the US economy. While activity may soften, we think the consumer will help the coming slowdown stay mild.

Equity investors should look beyond the hype for companies with clear strategies to profitably monetize the benefits of generative AI.

Bond investors have been looking for an approach that delivers attractive, repeatable, uncorrelated active returns. Is their wait over?

The BRICS’ invitation to six more nations to join their group is an important initiative promoting greater global influence for major EM countries.

The favorite in Argentina’s presidential election has vowed to eliminate the central bank and dollarize the economy. Which path will the country follow?

Adjusted earnings forecasts tend to overshadow reported earnings and add uncertainty to corporate outlooks.

Despite softening demand, US home prices remain elevated. The culprits are high interest rates, limited supply and owners' reluctance to take on new mortgages.

Investors should take a closer look at companies that help create a more energy-efficient ecosystem for AI.

Progress toward a sustainable world would be hamstrung without the backing of global banks and their sponsorship of green and sustainable bonds.

AI development is racing ahead. A thoughtful framework to making decisions and leveraging tools can help investors stay on course.

Ten stocks have dominated US equity market gains for most of this year. But the rest of the market may be waking up. That’s good news for active managers who seek to tap diversified sources of long-term returns that can withstand challenging macroeconomic conditions.

With the second half of 2023 underway, how are the macro and market landscapes unfolding?

Recession? Soft Landing? Getting a read on where the US economy is headed hasn’t been easy.

Flagging office occupancy rates have municipal bond investors concerned. But US cities have more than one card to play in the revenue game.

Do high-yield bonds still make sense for income investors at this stage of the credit cycle? We think so.

Investors are taking fright at commercial real estate risks in Sweden. But we think the situation is less threatening than feared.

Companies that are on course to overcome ESG controversies deserve closer attention from investors.

In any environment, multi-asset investors should prudently balance risks across equity, corporate credit and government bonds. But near-term tactical shifts can help take advantage of ever-evolving market conditions in the pursuit of long-term returns.

The more painful the situation, the more motivated we are to act. Here, we share an example of how an advisor can build a relationship with a client to become a trusted advisor and how that trust helps inspire referrals.

New public policies reflect growing urgency to address climate risk, which equity investors should emphasize, too.

Markets posted a strong first quarter, though it was a rollercoaster ride. The path forward will likely stay turbulent, with bank turmoil likely tightening credit conditions and the Fed still wrestling with inflation.

Over the past 18 months, high inflation drove rapid monetary policy tightening, which weighed heavily on consumer spending power and corporate margins. As inflationary pressures now abate, we see eventual improvement in both real incomes and profits, which should enhance prospects for multi-asset investors.

When markets are rising, investors don’t always prepare for turbulence. Yet we think the best time to build a defensive plan for an equity allocation is before volatility strikes.

Solid fundamentals, decent valuations, and attractive income potential make a case for continued exposure to corporate credit even in an uncertain economic environment.

Biodiversity is taking on increasing importance as a consumer concern, but it isn’t always top of mind for investors. We think that could soon change. Beyond the obvious environmental benefits, there’s an economic case to be made for protecting biodiversity.

Investors in ESG-labeled bonds expect well-structured issues with strong green or social credentials to command higher prices than the same issuer’s conventional bonds.

Financial companies that help address some of the world’s most pressing socioeconomic challenges deserve attention from sustainability-focused investors.

Even benchmark-makers are starting to address the supersized influence of heavyweight stocks. Nasdaq’s plan to reconfigure the weights of its constituents should prompt investors to think about the broader concentration risks in US equity markets, particularly in passive portfolios.

An improved income outlook for multi-asset investors, including higher yields, sharply contrasts with cloudy conditions at 2023’s start.

With the highest yields in years, the muni bond market looks increasingly attractive.

Artificial intelligence has quickly become a hot topic around dinner tables and in corporate boardrooms. But delivering business benefits from AI will take time. Investors should proceed with caution.

Global equity markets have had a very strong first half of the year, but it’s a pretty unusual time because, on the one hand, equities are contending with a pretty difficult macro backdrop.

We’re tactically cautious on developed-market equities with a broadly risk-off stance, but we have a relative preference for emerging-market (EM) stocks over a 6- to 12-month horizon.

Steadfast global resilience to recession highlighted the quarter, although the outlook hasn’t necessarily improved. But with labor markets tight and wages keeping pace with inflation, consumers are navigating the economy’s rough patches. Still, we expect growth to slow in time.

For over a decade, emerging markets (EMs) have been full of promise—and disappointment. Year after year, investors have waited for the powerful growth trends of the past that drove developing markets from Mexico to Malaysia to reassert themselves.

Surf’s up! Elevated yields and negative correlations are good news for bond investors. We share strategies for making the most of today’s opportunities.

Excitement over AI has driven equities this year. Yet investors should maintain a disciplined, long-term focus amid uncertain market conditions.

Central banks in the developed world have raised interest rates higher and faster than at any time in recent memory. But until labor markets start to slow, policymakers are unlikely to take their feet off the brakes.

Lower bond-market liquidity and insurance investors’ unique needs raise the stakes for liquidity management in what’s likely to be a volatile environment.

After the disruptions of the past few years, many of us are looking for a return to normal. For investors in emerging-market bonds, normal would mean a world in which global inflation is in check, interest rates are no longer rising, China is healthy, and traditional asset correlations resume.

Striking the right balance between interest rate and credit risk can be a good idea in the late stages of a credit cycle. We think it’s a particularly good idea in this credit cycle.

Naturally, the recent banking crises in the US and Europe raise concerns about EM exposure to financial sector risks too. We’ve found that the EM financial sector overall looks strong and resilient—but that several individual EM countries’ banks could be vulnerable.

Recruiting talent is a basic ingredient for business success. Companies that are more inclusive in their recruiting will discover better-qualified employees, which can bolster competitive advantages and help deliver better outcomes for investors.

Corporate bonds that fund environmental, social and governance (ESG) initiatives continue to capture investor hearts and minds. But ESG-labeled bonds come in different stripes, so investors need to discern among the good, the bad and the occasional ugly ones merely posing as ESG bonds.

Healthcare companies are beginning to explore how artificial intelligence (AI) might unlock efficiencies for patients and medical systems. But to transform science fiction into reality, AI applications in the sector must prove that they can improve business profitability to deliver returns for investors.

According to the ICI, assets in money markets have ballooned to $5.3 trillion—the equivalent of the world’s 5th largest economy. And with so much cash sitting on the sidelines, a fundamental question persists. Are investors being compensated to wait? Find out why sitting in cash could be a risky proposition as inflation and economic growth show signs of slowing.

Don’t miss an in-depth conversation with fixed income experts from VettaFi and AllianceBernstein, who will share insights on how to position portfolios amid a challenging market environment.

Topics will include:

• Is the battle with inflation over and what is the likely path of Fed policy going forward?
• Is the most televised recession in recent history likely to happen?
• How do you maximize return while mitigating risk in your client’s portfolios?

When it comes to their equity portfolios, US investors have historically exhibited a high degree of home-country bias. But in today’s fast-changing global market landscape, they may find that there are good reasons to rethink regional allocations to stocks.

If price stability is the legal mandate of the Bank of Japan (BOJ), and the central bank’s official target for price stability is 2%, as measured by the Consumer Price Index (CPI),* then why are fluctuations in prices the norm for Japan?

The standoff between the White House and Congress over raising the US debt ceiling has been the talk of the town for months. Now that the government has reached an agreement, savvy investors will be on the hunt for opportunities—and we think there will be some attractive ones.

The financial markets are giving off mixed signals of late, and credit investors may wonder whether to be downbeat or optimistic.

Here’s what we learned in earnings season about how companies are coping with a particularly tricky set of macroeconomic conditions.

Parking your fixed-income assets in cash may seem like a safe choice in today’s volatile investing environment, but it’s actually a risky proposition. Here are three reasons why sitting on the sidelines can be a dangerous game.

The Federal Reserve’s latest 0.25% interest-rate hike has likely capped one of its most aggressive policy-tightening cycles in 40 years. And the cumulative 5% policy rate increase in just over a year is now starting to have an effect on rate-sensitive sectors and inflation.

Muni investors have more reasons for optimism than concern as California tackles a projected $31.5 billion budget deficit.

As the US economy begins to feel the weight of the Federal Reserve’s rate hikes, investors have grown leery of US high-yield corporate bonds. On the surface, that makes sense. Historically, credit conditions soured when growth slowed.

Stock selection in a climate investing strategy takes more than just avoiding companies exposed to global warming risks. The process should intersect with an active search for diverse opportunities among companies helping to fight climate change, but with high-quality business models, too.

ChatGPT is generating excitement about the power of artificial intelligence (AI) to reshape the business. For investment firms, AI can help execute many menial functions to free up analysts for deeper research dives, armed with more information than they could ever process alone.

The big picture is that this week’s adjacent decisions by two major central banks point to a near-term divergence in policy paths between the US and Europe: the Fed is on hold and the ECB is still raising rates.

Floating-rate bank loans tend to do well when conditions are just right: the Federal Reserve is raising rates and the economy is growing. But such conditions typically don’t last long.

Markets posted a strong first quarter, though it was a rollercoaster ride. The path forward will likely stay turbulent, with bank turmoil likely tightening credit conditions and the Fed still wrestling with inflation.

The pandemic hurt small retailers by hastening the transition to digital commerce and emptied office buildings by turning living rooms into workspace. But it also fueled a warehouse building boom and unleashed a torrent of pent-up travel-and-leisure spending when economies reopened, underscoring the diversity of commercial real estate.

My grandmother always had something witty or wise to share. One of her favorites had me imagining vivid pictures of pounds of medicine in bottles and spoonfuls of colorful liquids.

India’s ability to attract foreign investment has long been hampered by subpar infrastructure and excessive bureaucracy. But reputations can obscure real change.

Investors in European bank shares have been rattled by recent turmoil in the sector. But many banks are in much better shape than widely perceived, and the sector is subject to much tighter regulation than in the US.

For years, investors seeking tax-efficient income grappled with a key question: Are municipal bonds that are subject to the alternative minimum tax (AMT) worth their higher yields? After all, an attractive bond yield didn’t hold as much luster once the AMT shaved off up to 28%.

The lack of diversification benefits of government bonds in 2022 was painful for multi-asset investors. The sell-off in US Treasuries in particular was sharp, and we saw correlations versus stocks move well into positive territory.

We think dividend-income strategies can be effective across multiple environments, provided that they’re designed to tap into a wider opportunity set beyond traditional dividend payers alone.

Global equities were volatile in the first quarter, as turmoil in the banking sector jolted markets.

Stock and bond markets were shaken by the recent banking crisis in the US and Europe.

Yesterday, the Fed raised its benchmark interest rate 25 basis points to a 4.75%–5.0% range and signaled that one more hike is likely this cycle.

Income-seeking investors are accustomed to casting wide nets after years of low yields.

Investors focusing on climate change often overlook Chinese firms.

Investors in emerging markets (EM) have endured a decade of poor performance. But things may be changing. Based on The Economist magazine’s data comparing hamburger prices across countries, many EM currencies look cheap today—as they did 20 years ago before an extended rally of EM stocks and bonds.

Over the past few decades, investors have become conditioned to expect that rising interest rates will trigger broader US financial market crises.

ChatGPT has ignited the world’s imagination about the power of artificial intelligence (AI).

As the financial services industry has evolved away from transactions and toward financial planning, an interesting shift has happened: more couples have started showing up in advisors’ offices to discuss their investments and their financial plan.

Passive equity investing has retained its dominance and outflows from active portfolios have continued amid the market and macro shocks of the past year.

When we think about generating income for our clients, for over 30 years we’ve thought the most efficient way to do this is to blend the two key risks of fixed income into one portfolio.

European policymakers face a dilemma: continue to hike interest rates to combat inflation or ease off to stimulate growth.

Healthcare stocks have remained in vogue through volatile markets, driven by increased interest in the sector during COVID-19.

European bond-market performance was among the worst on record in 2022, as Europe ran the gamut of geopolitical, economic and market storms.

After a year defined by inflation and the policy response to it, we expect 2023 to be a year of transition.

Small-cap companies are usually the most vulnerable to volatility, with their stock prices and earnings getting hit particularly hard and early in economic downturns, much like what occurred in 2022. Yet they also tend to lead the way on both fronts during recoveries.

As global warming worries approach critical mass, corporate bond investors expect issuers to be part of the solution.

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.