AllianceBernstein

As expected, the European Central Bank (ECB) raised its three key interest rates by 25 basis points (bps) on June 11, responding to the energy shock from the Iran war. Inflation was revised higher for 2026 and 2027, and it is expected to fall to target in 2028. Although we expect one more hike, the timing is uncertain as the ECB is keeping all options open—including the possibility of not raising rates again.

Since early 2025, value stocks have enjoyed a strong run, defying market volatility driven by trade tensions, geopolitical stress and macroeconomic uncertainty. That resilience may seem counterintuitive given value’s historically cyclical profile. Yet, we believe the underlying characteristics of value stocks are proving particularly well suited to today’s evolving market landscape.

Many advisors deliver capital markets commentary as if the goal were simply to explain what’s happening. They assemble charts, cite data, summarize headlines and hope the client will draw the “right” conclusion.

The war in Iran is putting pressure on airlines. Higher jet fuel prices are cutting into profit margins, and the risk of a prolonged conflict may reduce travel demand in Europe and Asia. But for lessors, these gathering clouds may come with a silver lining.

In the first phase of the generative AI boom, the winning strategy was straightforward: own the physical bottleneck. Alphabet’s plan announced this week to raise $80 billion suggests that the next phase may hinge on something else—the ability to finance AI capacity at scale without undermining returns.

Climate change has become a defining force in geopolitics. As governments respond to record heat waves, floods, wildfires and droughts, their policies and economic posturing are reshaping manufacturing, trade and energy security across the capital markets.

Private markets have become integral to modern portfolios, with many investors searching for higher returns and diversification, including from public markets. But recent fund redemptions have reinforced that illiquidity isn’t theoretical, raising questions about the benefits of giving up liquidity. We see several—but investors must understand the trade-offs.

Artificial intelligence (AI) poses many ethical issues that may translate into risks for consumers, companies and investors. AI regulation, which is developing unevenly across jurisdictions, adds to the uncertainty. The key for investors, in our view, is to focus on transparency and explainability.

Equity investors are facing monumental questions about their allocation strategies in a new market regime. Market concentration has risen sharply, valuations have climbed to record highs in parts of the market and factor volatility has dominated returns.

US growth stocks underperformed in early 2026 amid AI disruption fears and an unresolved conflict in the Middle East. But these stresses could create favorable conditions for selective, diversified investors to unlock long-term growth potential in a rotating market.

Chasing performance by deviating from a benchmark has long been the hallmark of active managers. But it may be time for a rethink. Our research suggests that investors allocating to core equities should consider refreshing the criteria they use to identify portfolio managers that can consistently beat their benchmarks.

For private equity firms, capital flexibility is prized today. Merger-and-acquisition (M&A) activity has cooled, while commodity prices and artificial intelligence (AI)-driven disruption have heated up, creating uncertainty for investors. This makes it more challenging to sell portfolio companies, so private equity firms are holding investments longer. As a result, many firms are turning to net asset value (NAV) loans for capital needs.

Emerging markets (EM) are using low-cost renewables to cut fuel imports, stabilize power costs and improve energy security—positioning EM as the growth engine of the energy transition. Countries and companies that leverage their dominance in critical minerals and green technology could pull ahead, creating dispersion in potential outcomes for investors.

It’s human nature to allow familiar patterns to guide our decision-making processes. But it’s just as important to recognize when changing conditions warrant a rethink. Return patterns in global equity markets appear to be shifting in ways that should prompt investors to revisit their allocations.

With tensions simmering in the Middle East and the global economy feeling the pinch of high energy prices, high-yield bonds might not be on every investor’s radar. In our view, they should be.

High-growth technology stocks still dominate the investment landscape, fueled by the promise of AI. But recent signs of a broadening market are revealing that more industries beyond just tech are positioned to benefit. We think large-cap value stocks are well-poised for this shift, especially since AI can be both a disruptive and driving force in today’s dynamic market.

Artificial intelligence (AI) leadership is no longer a developed-market monopoly. Emerging markets (EM) now have their own AI champions, and productivity gains may follow. For bond investors, we expect the implications to differ by country—driven by industry composition, capital intensity, digital infrastructure and speed to adoption.

With the war in Iran dragging past the original ceasefire deadline, how might the situation impact global energy markets—and other sectors—from here? To cut through the noise, we asked Luke Pryor, Security of the Future Portfolio Manager and Co-Portfolio Manager of Strategic Equities, to share his oil and gas industry expertise.

Investors are questioning the staying power of medical technology (medtech) stocks, which have fallen from grace since the COVID-19 pandemic. Yet we think innovation continues to create exciting opportunities in companies that march to a different beat than the rest of the healthcare sector.

The European Union (EU), pursuing ambitious decarbonization goals, is significantly recalibrating its emissions compliance regime with the Carbon Border Adjustment Mechanism (CBAM). This new border tax intends to promote fair competition amid varying emissions rules and costs. Our research suggests it could also offer insight into profitability as the rising costs to meet carbon limits weigh on corporate financial health, creating winners and losers.

The long-term shift from traditional pensions to defined contribution (DC) plans puts employees in charge of their retirement savings—and needing help.

Investors often view commercial real estate (CRE) through the narrow lens of the office sector. We think this office-only focus understates how broad the asset class is and its potential. Offices may face well-documented headwinds, but many other CRE segments appear more resilient.

Technology is transforming bond investing, across research, trading and—through optimizers—portfolio construction. We believe optimizers based on advanced digital investment platforms have a major advantage—and can create new levels of insight for portfolio managers that have them.

Tax management is about more than just deferring taxes to reduce this year’s bite. It’s also about managing where and how taxes show up over time. For high-net-worth investors with diversified portfolios, permanently reducing taxes versus deferring them may bolster long-term after-tax wealth. Many investors overlook a potent tax reduction tool: bonds.

Dividend-paying stocks offer an effective hedge against inflation—as well as solid long-term return potential in other environments when actively sourced from the right parts of the market.

AI’s rapid growth is driving demand not only for electricity but also for the clean water needed to run its physical infrastructure. As data centers expand, rising water intensity is straining supplies and testing long-term sustainability. In our analysis, these pressures create both risks and opportunities for active investors.

Global equities declined during a volatile first quarter as the war in Iran roiled energy markets and fueled inflation fears that destabilized the economic growth outlook. Mounting geopolitical hazards add to existing worries around concentrated equity markets and the potential for AI to disrupt businesses.

Oil prices are the key transmission channel, and how far they rise and how long they remain elevated could shape the outlook for growth, inflation and policy, with implications for bond markets.

Join us on Wednesday, April 1 at 11:30 a.m. CT where we will look further into this differentiated way of investing outside the US.

The United Nations (UN) warns of a roughly US$4 trillion annual shortfall in financing for its sustainable development goals—a gap too large for the public sector to fill alone.

Emerging-market (EM) equities have been hit hard since the Iran war began, as investors worry about fallout from the conflict. Yet, history suggests that periods of heightened market stress—when volatility is elevated and uncertainty is still being priced—have created favorable entry points for EM investors in the past.

In today’s era of automation, some situations demand a more active approach. Municipal bond investing is one.

The multi-asset playing field presents income investors with broad opportunities across asset classes. But investors that rely only on traditional stock dividends and bond interest may be missing out on other attractive income sources.

The artificial intelligence (AI) trade that has dominated equity markets in recent years is showing signs of fragility. As investors reexamine the scale of the AI infrastructure build-out and optimistic assumptions around AI adoption, a group of “old-economy” sectors is quietly reasserting itself.

Private credit is a key pillar of debt capital formation alongside public credit markets and bank balance sheets. But an important part of its value proposition—to borrowers and end investors—is its illiquidity relative to public markets. That distinction is by design, and we think it should stay that way.

The wealth transfer didn’t create a new problem; it exposed one advisors have postponed for decades.

Five techniques can help human experts tame hallucinations and make models more effective.

A healthy mix of income and growth potential may yield a more effective equity allocation.

The size and duration of the oil-price shock are key variables in determining the ultimate impact.

Software stocks have suffered a rude awakening amid fears that artificial intelligence (AI) will upend the industry. While the outlook is highly uncertain, the indiscriminate market response may be conflating structurally exposed software businesses with more durable companies.

Improving after tax returns is rarely as simple as boosting pretax returns or reducing tax expenses. It’s actually quite a bit more involved than that. As we see it, maximizing after-tax performance requires an “all of the above” approach, applying a range of techniques in a holistic way.

After years of trailing their large-cap peers, small-cap stocks have tested the patience of even seasoned investors. But we believe a dramatic improvement in earnings growth driven by lasting change in the US economy is creating sustainable recovery potential for small companies of all types.

As industry experts convened at SFVegas 2026, the world’s largest structured-finance conference, insurers showed up in large numbers, underscoring growing exposure to securitized assets and private credit in portfolios. We also attended the event and returned with a few key takeaways.

After underperforming for much of the last decade, emerging-market (EM) equities rebounded nicely in 2025. Is it too late to invest? We don’t think so. With valuations still attractive and earnings growth forecasts looking up, this could be the right time to give the developing world a closer look.

The agenda is being reset for US shareholder meetings in 2026. Regulatory shifts have led to a steep decline in overall shareholder proposals while governance issues are becoming the biggest battleground.

The playing field presents broad opportunities for income investors today, with income and growth potential across asset classes. But an effective defense is also critical in capturing that potential. When it comes to the tools of the trade, we think broader is better.

The global energy transition is accelerating, and 2026 is shaping up to be an active year for renewable energy development. As we see it, private credit’s central role in financing the power build-out and its ability to structure flexible solutions for borrowers is likely to generate attractive return opportunities for investors.

It can sometimes be hard to tell whether the US housing market is hot or cold. Currently, existing-home inventory is tight and prices are stable—indicators of a hot market—while sales volume is down and home price appreciation has slowed. So, what’s the temperature?

Emerging-market (EM) corporates have a track record of resilience across market cycles. For over a decade, EM corporate bonds have allowed for participation in rising markets, while exposing investors to less downside during market downdrafts.

Private credit has been in the news lately. That’s nothing new. For years, investors have read about the potential opportunities the asset class offers and how it works. Let’s dig a little deeper into what private credit is, what it isn’t and how it can fit into a diversified investment portfolio.

Income investors face a promising landscape today. But we think income investing should be more than simply combining the highest yielders in each asset class, which could create unintended risks. In our view, an efficient multi-asset approach can help find the right balance between income, growth and diversification.

Private assets are gaining traction in many portfolios, as investors seek new frontiers given a more challenging market landscape. Returns of traditional asset classes in the years ahead are likely to be lower on an inflation-adjusted basis, and public markets offer fewer options for diversification today, at a time when managing risk is becoming increasingly important.

As the economy struggled in the wake of the crisis, Warsh was primarily concerned about the risk of inflation—even as unemployment pushed near 10%—and indeed, over the next decade the primary policy concern turned out to be inflation consistently running below target.

New research connects intensifying natural perils to their future implications for asset classes.

Despite an aging credit cycle, private credit still plays a starring role.

Even though it’s still early days in the age of artificial intelligence (AI), it sometimes feels like this innovation has been around forever. In that short time, the pace of change has been staggering.

Stock market volatility has a way of triggering powerful emotions. Rising prices foster confidence. But when markets fall, fear can take over, leading investors to make decisions that may undermine long-term returns.

The US is coming off a period of remarkable equity-market dominance. Over 11 of the past 15 years, US equities outpaced their non-US peers—sometimes by sizeable margins. But last year, the pattern reversed dramatically.

Former Federal Open Market Committee Chairman Alan Greenspan famously observed that forecasting foreign exchange was like flipping a coin. Last year proved him right. What happened, and what lessons can it teach us about the dollar in 2026?

The importance of biodiversity as a nature-related risk in investors’ portfolios has become better understood in the past few years. Investors are beginning to appreciate how complex and nuanced biodiversity risk can be.

Healthcare stocks were rattled by US policy uncertainty in 2025. But signs of resilience have surfaced as the sector reaffirms its defensive strengths and growth potential, sparking a shift in investor sentiment.

When investors think about risk in equity portfolios, the usual suspects come to mind: market risk, sector risk or maybe even macroeconomic risk. But lurking beneath the surface is a less obvious, often underestimated threat—style and factor risk.

Residential mortgage loans offer insurers a combination of yield, diversification, capital efficiency and liquidity that we think is difficult to replicate elsewhere in private credit. In a market shaped by structural housing undersupply, strong borrower credit and expanding non-agency issuance, we believe residential mortgages present a timely and scalable opportunity.

Most DC plan participants share the same goal of a comfortable retirement. It’s the journey that differs and much depends on personal investment knowledge, risk comfort level and other qualities, according to the latest research by AllianceBernstein (AB).

The materiality of ESG factors differs across sectors and markets. Investors need to understand how.

Retirement planning often focuses on risks: not saving enough or outliving hard-earned savings, enduring a sharp market downturn and possible surprise expenses. While these pitfalls are very real, it’s understandable that they may make individuals hesitant to spend their savings in retirement.

Well-known factors such as value and momentum are widely recognized to have predictive power. Advanced systematic approaches, however, seek to identify additional drivers of performance—including proprietary factors—to integrate into their multifactor models.

In a turbulent 2025 dominated by US trade policy shocks and geopolitical tensions, the global economy proved resilient. Fears of tariff-related slowdown and renewed inflation proved misplaced, as growth surprised to the upside and inflation continued to soften.

The backdrop for Europe’s bonds remains favorable—even as technological change creates new challenges.

Our playbook for 2026 aims to address real risks by expanding allocations in new directions.

As the private-credit market matures, it’s also becoming more accessible to a wider range of investors. But variation in outcomes has increased. In our view, that’s a byproduct of growing scale and competition.

Driven by a more predictable regulatory backdrop and a surge in large-scale deal flow, 2025 has delivered the strongest merger arbitrage returns since the post-pandemic boom. This resurgence, characterized by narrowing spreads and a notable lack of failed deals, has set a robust foundation for continued activity into 2026.

After a turbulent start to 2025 defined by US policy shocks, attention shifted to AI optimism and corporate fundamentals, with earnings and capex intentions often eclipsing traditional data releases. Despite these twists, returns were solid across asset classes.

Private credit is expanding beyond its traditional niche to finance major infrastructure projects for investment-grade corporate borrowers, a trend particularly notable among hyperscalers building AI infrastructure.

While the AI-driven rally in US mega-cap growth stocks grabbed attention in 2025, a very different story was unfolding far from Wall Street. Outside the US, from Europe to Japan, value stocks shed their perennial underdog status to stage a dramatic recovery—one that we think may just be getting started.

Municipal housing bonds are presented as a critical dual solution to America's deepening affordable housing crisis, especially as federal support diminishes. These tax-exempt bonds significantly lower financing costs for developers, making affordable units viable while offering investors compelling tax-exempt income and social impact.

The US dollar (USD) has weakened over the last few months, fueling strong emerging-market (EM) stock and bond returns in 2025. Now, with more clarity around tariffs and the record-long US government shutdown resolved, will the greenback strengthen and flip the script on EM? We don’t think so.

Despite the increasing need for retirement income security, many defined contribution (DC) plan sponsors hesitate to adopt new lifetime income solutions due to concerns over fiduciary liability and plan flexibility.

It’s been a tough year for high-quality stocks in Europe. Yet despite vexing market conditions, the underlying business features that define quality stocks often remain intact. For investors, there are compelling reasons to maintain conviction in companies with robust profitability and resilient business models—even when short-term returns disappoint.

While passive portfolios have excelled recently due to mega-cap dominance, the article warns that market disruption and concentration make them vulnerable to a sudden reversal in sentiment. It asserts that skilled active management is essential now to identify future winners and benefit from a potential broadening of the equity market.

In today’s equity markets, investors face a paradox: share price swings are more dramatic than ever yet often have little to do with a company’s underlying health or earnings. So how can investors achieve true diversification and risk reduction in a world driven by fickle market forces?

Taiwan-based insurers are gearing up for a big overhaul in their regulatory framework. The transition to the Taiwan Insurance Capital Standard (TW-ICS) is slated for January 2026, though some provisions will have a lengthy phase-in period.

Even amid rising markets, US investors should be aware of the hazards of a fast-changing environment.

Credit cycles happen. Defaults happen. But negotiated loan structures, lender protections and long-term capital make private credit uniquely resilient

High concentration makes it hard for diversified active portfolios to outperform. While the mega-caps include great businesses, active strategies may avoid or underweight popular stocks over concerns about valuations, business models and interrelated risks, or because of regulations on weighting individual holdings.

China’s “anti-involution” policy to tackle deflation, announced in 2024, is still in its early stages. Some effects are already visible, but compared with China’s last deflation fight in 2014–2015, the policy may take longer to work, in our view.

As policy priorities evolve, Japan’s focus on “responsible fiscal expansion” could reshape bond dynamics.

The consumer sector was in sharpest focus during the conference. That wasn’t surprising, given the negative headlines surrounding fraud allegations at subprime auto financer Tricolor Auto Acceptance and its subsequent bankruptcy filing.

Register now and join AllianceBernstein’s fixed-income experts as they discuss how to navigate today’s shifting market landscape.

Stocks have surged since their April lows, with demand especially high for higher-risk equities and technology stocks—including those issued by firms with unproven profitability. But economic growth is slowing, and trade-related uncertainty has yet to be resolved.

Technology stocks have continued to benefit from enthusiasm over the transformative potential of artificial intelligence (AI). Yet many investors are concerned that share prices and valuations may reflect overly exuberant earnings expectations.

By contrast with traditional discretionary approaches, systematic fixed-income models are exclusively data-driven and operate autonomously—ranking securities, constructing optimized portfolios and managing risk without traditional inputs or discretionary overlays.

Over the last few years, the US housing market has defied expectations as prices, helped by constrained supply, have remained resilient—despite high mortgage rates and affordability challenges for homebuyers. But the outlook appears to be darkening, with recent headlines seizing on potentially adverse trends.

Bond issuance linked to environmental, social and governance (ESG) purposes dipped in the first half of 2025 following a strong second half in 2024. But we expect issuance of ESG-labeled bonds will pick up for several reasons.

AI is a potential boon to healthcare companies, but business fundamentals—not the latest science—are the true test of staying power.

How can investors navigate the diverse, dynamic field of corporate and asset-backed opportunities?

Water scarcity, supply-chain risk and board-level decisions underscore the importance of a stewardship lens.

Blended finance has the potential to transform overlooked markets into investable opportunities.

Companies with dependable growth profiles might be just what equity portfolios need in turbulent times.

Earnings expectations for the Magnificent Seven (or Mag Seven) mega-caps remain optimistic, but profits may face pressure as spending rises. Equity investors should carefully evaluate each of the mega-caps while searching across other sectors for solid sources of profitable growth.

How should investors think about integrating private credit into their portfolios?

When equity markets rise to record highs, it’s natural for investors to feel a twinge of anxiety about putting more money into stocks. The fear of an impending correction often looms large.

It’s a deeply ingrained investing maxim that risk and return go hand in hand: to get more return, you must accept more risk.

The adage “don’t borrow trouble” advises us against distressing over problems yet to occur. But we don’t think it should apply to retirement planning. In fact, digging into what concerns DC plan participants now may help them avoid retirement pitfalls down the road.

Director elections can be a powerful tool for investors to weigh in on ineffective boards.

Finding attractively valued stocks that can overcome evolving conditions requires a new mindset.

As their share price patterns diverge, selectivity among the US mega-caps is paramount.

Revamped insurance regulations could bring securitized investments back into play.

Elevated yields and conservative balance sheets are helping high yield stay resilient amid trade uncertainty.

As investors re-evaluate their allocations to US assets, we think they should consider euro-denominated bonds.

The first step toward offering participants lifetime income is to address misperceptions.

Trend-following may struggle in range-bound markets, but it’s not the only macro approach.

Efforts to reduce the central bank’s autonomy would likely disrupt markets.

Our research suggests that firms with sound executive pay practices yield healthier returns.

Policy shifts may create an incentive to diversify.

Technology offers plan sponsors powerful retirement planning and engagement tools.

Policy shifts may create an incentive to diversify.

Income-seeking equity investors don’t need to sacrifice growth to capture the power of dividends.

We’re not surprised by the macro and market resilience, but it’s too soon to say we’re out of the woods, especially as the impact of uneven fiscal policy comes into sharper focus. Opportunities are out there, but context and discipline are critical.

Volatility often evokes emotional responses from investors. Two big sell-offs in early 2025 reminded us why it’s important to fight those responses and stay invested through downturns.

Many advisors undercharge out of fear, but increasing fees to match your value strengthens client relationships and ensures you’re rewarded for the services you provide.

Compelling bond yields and diverging equity returns offer building blocks for effective strategies.

As the second half gets underway, we think a modest overweight to risk assets is called for.

Investors looking for cash flow from commercial real estate may want to check out the debt side.

Some say private credit hasn’t been tested. We disagree…and stress can sharpen the senses.

The US economy is important, but it’s not the only one in a global approach.

This year’s formidable challenges have clarified strategic lessons for equity investors to apply in the coming months

Newsflow and misperceptions can obscure the drivers of profit growth—especially during a volatile year like 2025.

Market concentration rewarded passive investors who held market weights in the surging mega-caps. Since late 2014, passive index returns ranked in the 10th percentile of all portfolios in eVestment’s US Large Cap Growth Equity universe. In other words, only 10% of active managers outperformed.

Fixed-income investors concerned about tariffs and US exceptionalism may find opportunities in hedged global bonds.

In this latest installment of the AB Disruptor Series, we’ll look behind the algorithms and output to examine the critical ecosystem that underpins AI. We’ll explore the key links in the AI supply chain—from raw materials and semiconductors to data centers and energy demand—and why they matter to investors. And of course, we’ll also look at how geopolitics, trade policy and tariffs are reshaping this landscape, creating both risks and potential across the value chain.

A new culture of reform at Japanese companies offers exciting potential for equity investors.

Systematic fixed-income investing is attracting increased attention but needs specialist skills and resources. Would your manager have what it takes?

Private investments demand patience, but the rewards could be worth the wait.

New research connects intensifying natural perils to their future implications for asset classes.

Matching assets to long-term liabilities without compromising on return potential can be a challenge for insurers with long-duration liabilities.

Proposed tax-cut extensions and higher debt costs could amplify fiscal concern.

Looking to reduce volatility without sacrificing income potential? Consider short-maturity high yield.

The materiality of ESG factors differs across sectors and markets. Investors need to understand how.

Emerging-market (EM) stocks might not seem an obvious choice for anxious investors during a trade war. But history suggests that past volatility peaks have created favorable moments to invest in EM stocks.

Technology stocks have been buffeted by market volatility in early 2025, with shares tied to artificial intelligence (AI) hit especially hard.

Emerging market equities and bonds could benefit if the US dollar weakens—a possible scenario amid tariff turmoil.

It may seem risky to lend against recurring revenues, not earnings. With proper underwriting, it doesn’t have to be.

Over years, the US cemented its position as an exceptional source of earnings growth that fueled outsize equity returns. Many investors are now questioning whether the US will retain its advantages as President Trump’s trade policies add uncertainty to the outlook across industries.

A tense global trade war, policy uncertainty and other investor concerns in recent weeks have unleashed the sharpest market swings in years, with the CBOE Volatility Index (VIX) spiking to 52.3 on April 8.

With flexibility, humility and disciplined processes, equity investors can find a way forward.

Small-caps have suffered in early 2025, but increased market breadth could support a recovery.

Register now and join AllianceBernstein’s fixed-income experts as they discuss how to navigate the current economic landscape characterized by these issues.

High-yield bonds may be an attractive choice for investors looking to rebalance portfolios.

The US is running a substantial net trade deficit with the European Union (EU). Europe has a surplus—but with more exports at risk, it also has the weaker position in a potential trade conflict.

A well-planned defensive strategy can position equity portfolios to be resilient in a very harsh market environment.

A raft of reciprocal tariffs between China and the US could bruise China’s export revenues in the short term. But its domestically focused economic engine and shrinking dependency on US trade should minimize fallout in the long run.

The bond market has been extremely volatile the past couple of weeks since the introduction of global tariffs by the US. Bond yields have sold off almost 50 basis points, and today we'd like to examine why did that occur, what's next, and how should investors think about duration in this environment?

Coming off a wild ending to a disappointing first quarter, investors must navigate unsettled capital markets and decipher a wave of incoming policy news.

Stock markets have been rattled by trade war tensions and economic uncertainty driven by US tariff policies. Yet history suggests that equities have usually performed well in the aftermath of peak market volatility.

Emerging-market (EM) stocks might not seem an obvious choice for anxious investors during a trade war. But history suggests that past volatility peaks have created favorable moments to invest in EM stocks.

President Trump’s tariffs bring déjà vu for the euro-area economy: it’s back to slower growth and lower rates.

Emerging-market (EM) stocks might not seem an obvious choice for anxious investors during a trade war. But history suggests that past volatility peaks have created favorable moments to invest in EM stocks.

Stock markets have been rattled by trade war tensions and economic uncertainty driven by US tariff policies. Yet history suggests that equities have usually performed well in the aftermath of peak market volatility.

Global equities faced fresh challenges in the first quarter of 2025 amid growing trade-war concerns and developments in artificial intelligence (AI).

How might the recently announced US trade measures translate into economic reality?

The early days of the Trump administration have brought sweeping tariff announcements. While the situation is fluid, the direction is clear: trade restrictions are likely to increase, with China as a primary target.

As volatility rises, staying invested is a strategic priority for capturing long-term return potential in a broadening market.

Uncertainty is the watchword for the global economy. Dramatic policy shifts—tariffs in particular—by the Trump administration 2.0 have so far surprised financial markets and softened consumer sentiment. But we see a global economy well positioned to absorb potential shocks in the months ahead.

Since mid-January, a new political regime in Washington has shaken the geopolitical landscape and global markets. In this volatile environment, bonds have performed well, resuming their traditional role as ballast against falling stock prices and attracting strong demand from investors.

It’s been a rough start to the year for US equity investors. Yet the volatility hasn’t been too far out of the ordinary in historical context.

Emerging-market (EM) equities are off to a strong start in 2025, up 4.5% through March 14 in US-dollar terms. But investors could be excused for being wary. After all, emerging markets have struggled over the past decade.

Muni issuers are generally sound, so cuts in aid would be felt but dealt with.

European equities have started 2025 on a positive note. Several factors could help support the market overcome challenging conditions.

Banks’ retreat is creating opportunity for investors.

Learn why discounting can harm your reputation as an advisor and discover strategies to build trust and confidence with clients.

Though the new US policy focus is on oil and gas, wider opportunities still beckon.

A holistic approach may help insurance investors navigate an expansive opportunity set.

The AI breakthrough spotlights some of China’s distinctive features that deserve closer attention from investors.

With major US policy change unfolding, flexibility across and within asset classes will be critical.

Measuring the effectiveness of ESG-labeled bonds can be a challenge, particularly with “outcome bonds,” which have specific environmental or social goals but lack standardized assessment criteria.

Healthcare stocks were hurt by volatility from factors that include policy-related uncertainty, which hasn’t faded since the US election.

Our research suggests that healthcare firms with sound pay practices may yield healthier returns.

Efforts to secure supply chains and energy sources are creating powerful and enduring themes for equity investors—even in these turbulent times.

Building a bond portfolio these days isn’t easy. Interest rates have been volatile. Credit spreads are tight. And sweeping change in US fiscal, trade, and regulatory policy is underway. We think securitized assets deserve a closer look.

Is an M&A boom brewing?

Integrating private assets may enhance target-date glide paths, but know your exposures.

In today’s era of automation, some situations demand a more active approach. Municipal bond investing is one.

Impact investors can help devastated communities recover and build resilience.

After the trade war’s opening salvoes, tensions seem set to last for some time.

The evolving high-yield markets make the case for a global, multi-sector approach to generating income.

Technology stocks have been the poster child for growth in recent years. Other sectors deserve a closer look today.

China’s efforts to steer between domestic and international growth challenges in 2025 could be good for bond investors.

Quality has become a popular buzzword in equity investing. But what does it really mean?

In our view, active investors face opportunities to outperform created by looming policy changes and the macro landscape.

Not all companies in emerging markets will be hurt by President Trump’s agenda. Here’s what equity investors should look for.

Four strategies for navigating crosswinds in the municipal bond market.

As growth extends to more regions, we see expanding opportunities across countries and assets.

European equity markets may look vulnerable to fallout from new US policies. But some companies offer investors reasons to cheer.

A look at how the renewable energy opportunity may and may not change.

New policies could disrupt markets, but high starting yields and strong demand for income should provide ballast.

Natural disasters test—but don’t break—municipalities’ resilience.

Engaging up front with four key workstreams may smooth the process of adding a solution.

The journey from niche asset to core allocation looks set to continue.

The question for investors will be to what degree US outperformance will extend to the financial markets.

European bond markets are climbing a mountain of worry. Despite the risks, history suggests a positive outcome.

Political uncertainty and volatility create fertile ground for active investors to find companies that can successfully navigate a new era.

Continued volatility, falling yields, and other expectations for the year ahead, plus seven strategies to take advantage.

We expect the opportunity set to widen for income investors in 2025, though less clarity around the second half requires a dynamic approach.

The range of potential economic outcomes is wide, but a solid starting point suggests resilience.

If history repeats itself, this trend could be especially pronounced in 2025, given the potential for lower US corporate tax rates and domestic-friendly policies.

Tax cuts alone can’t save a weak business, but high-quality companies can put a tax-break windfall to good use for investors.

Many hot trends have been turned into equity portfolios. But fads aren’t investing themes and may be flawed as standalone investments.

To improve potential returns and mitigate risks, investors should choose from the widest range of opportunities.

When the ECB’s rate-cutting cycle ends, should the neutral rate be far higher than pre-pandemic? Not in our view.

Do you recall the famous line from the movie Glengarry Glen Ross? “Always Be Closing.” This may be good advice later in the process of working with a prospective client, but in the first conversation, try this instead: Always Be Curious.

When the ECB’s rate-cutting cycle ends, should the neutral rate be far higher than pre-pandemic? Not in our view.

Our research suggests that healthcare firms with sound pay practices may yield healthier returns.

With human rights regulations expanding, investors need a broader approach to assessing risk and opportunity.

Policy changes could reshape return potential for companies across the US market. Here’s how investors can start thinking about the challenges ahead.

Wholesale elimination of tax exemption isn’t likely, but certain types of muni bonds could be targets.

In the weeks surrounding the US election, US bond yields climbed sharply, reflecting speculation that President-elect Trump’s policies could lead to higher inflation and a widening federal deficit.

Some retirees say they could have planned better for lifetime income—helpful insight for current participants.

We take an early look at how a new policy platform could factor into the US deficit and debt.

Balancing credit risk with interest-rate risk in a dynamically managed portfolio can be an all-weather approach.

From stock picking to benchmark selection, the construction of an active thematic equity portfolio will play a crucial role in its ability to deliver on a theme’s return potential.

The 10 largest stocks in the S&P 500 returned a staggering 104.6% from January 2023 through June 2024—more than double the broader index return

Healthcare companies often grab headlines for their exciting drug innovations. But we think the focus should be on business fundamentals.

Emerging-market (EM) corporates have a track record of resilience across market cycles.

For DC plan sponsors, developing a short list of income solutions is a good first step.

Instead of dreading volatile markets, the savvy advisor understands that during these times, her professional skill is most valuable and she can fulfill the vital role that she was hired to accomplish.

Thematic portfolios that tap into big global trends offer exciting opportunities for equity investors. But the devil is in the detail.

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

Integrating the physical toll of climate change helps investors spot key risks—and opportunities.

Normalization seems to be in its final stage, with the Fed expected to continue cutting rates.

In our latest AB Disruptor Series episode, we take a closer look at the implications of a polarized US electorate on the macro and market landscape.

Just 5% of board directors are under the age of 50. But research indicates that more age-diverse boards may possess unique business advantages.

As the Fed begins cutting rates, October’s surprisingly strong US employment report only adds to the data pointing to a soft landing, despite lingering concerns of a downturn. We expect the economic expansion to continue, which has important implications for multi-asset strategies.

Interest rates are falling but growth is holding up. Still, we see ways to proactively shore up private allocations.

The US debt is near its highest level in history and on track to grow. Neither political party currently seems intent on making it more sustainable.

Monetary policy began to transition from restrictive to neutral last quarter, and we’re optimistic that continued easing can prevent a hard landing.

Market conditions are shifting fast. But making impulsive changes to equity portfolios and allocations can be counterproductive.

If climate portfolios are positioned in the same giant US stocks held in broad equity allocations, investors may unwittingly double down on risk.

We expect bond yields to trend gradually lower—but it may be a bumpy ride. These seven strategies may help investors take advantage.

We think it would be a mistake for investors to let tighter spreads and upcoming maturities deter them from the euro high-yield market.

Emerging-market stocks are showing signs of life amid hints of earnings improvements. Where should investors look?

he 2024 US presidential election is still months away and already entrenched as one of the most eventful in the country’s history. What started as a historic contest between the current president and former president has evolved into a flurry of poll-changing, momentum-shifting developments.

The exclamation mark: President Biden’s late-cycle decision to withdraw his candidacy. But behind the sensational headlines and endlessly debated storylines, we see a few core tenets at the center of this year’s battle of the ballot box. They hold implications for all of us—as investors and voters.

Strategies and best practices for equity portfolios.

A new wave of opportunity seems set to flow into private credit markets, which could enhance risk-adjusted returns and diversify portfolios. What's driving this potential?

Historically, investors have struggled to add meaningful alpha through security selection. A dynamic new credit scoring approach could change that.

With their unrivaled depth and breadth, US capital markets lend themselves well to multi-asset strategies. The US equity market is a key portfolio building block and has outpaced the stock markets of other developed markets over the past decade.

High-yield investors put off by today’s narrow spreads could be missing out.

Candidate tax policies could affect municipal bonds, but the bigger picture is important too.

As more Chinese companies get comfortable paying dividends, investors may find new sources of equity return potential.

When global equity markets tumbled in early August, investors got a glimpse of what a deeper correction could like for the US giants, and it wasn’t pretty. The so-called Magnificent Seven have dominated US and global equity market returns since late 2022—and valuations have soared—as earnings growth rebounded and on expectations that they will be the big winners from artificial intelligence (AI).

An extended period of elevated interest rates may have long-term implications for both consumers and businesses—affecting how investors value company shares.

Portfolio managers should always have good explanations for their underweight positions. These days, it matters more than ever.

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.

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.