Active Fixed Income

The global economic landscape continues to evolve, and 2025 promises to be a year of adaptation and resilience.

Uncertainty with regard to interest rate policy warrants an active management strategy inherent in the Vanguard Short Duration Bond ETF.

Nothing is more fundamental to the current health of the economy than jobs creation and income growth.

Active fixed income could stand out in 2025, with active offering a way to refresh bond portfolios and allocations.

Managing Director, Washington Policy Analyst Ed Mills looks at how several of the top market-relevant Washington DC issues could play out in 2025.

Markets are coming off back-to-back gains of more than 20% each on an annual basis. The chances of a hat trick in 2025 are slim to none.

As we enter 2025, the financial markets are optimistic. That optimism is fueled by strong market performance over the last two years and analyst’s projections for continued growth. However, as “Curb Your Enthusiasm” often demonstrates, even the best-laid plans can unravel when overlooked details come to light. Here are five reasons why a more cautious approach to investing might be warranted in 2025.

Many people these days are on heightened alert for bubbles, and I’m often asked whether there’s a bubble surrounding the Standard & Poor’s 500 and the handful of stocks that have been leading it.

After another resilient year for the US economy, we look ahead to the new year.

As we enter 2025, there has been a lot of conjecture about a return to the 5% threshold.

Chief Economist Eugenio Alemán and Economist Giampiero Fuentes break down the factors likely to impact economic growth, inflation and interest rates.

U.S. equities closed 2024 on top and U.S. growth took back leadership from U.S. value.

US equities were up notably in 2024, due to a strong economy, accelerating earnings growth, US election results, and AI/mega-cap strength.

Since dividend investing can be boiled down to a single strategy—generating income—you might assume we don’t need a toolbox full of tools. We know that’s not true.

Yields may trade in a wide range as markets work through issues in the new year. Navigating volatility may mean capturing higher nominal and real yields over the longer term.

Two key components drive the shape of the yield curve: expectations for the short-term interest rate and expectations for the term premium.

Our Cash Indicator methodology acts as a plan in case of an emergency. Investors should expect more equity market volatility ahead.

Two key components drive the shape of the yield curve: expectations for the short-term interest rate and expectations for the term premium.

Despite a lackluster 2024 for most bonds, investors with an eye on the long-term time horizon could reap future benefits.

The most important issue regarding what lies ahead from an economic perspective is that the economy’s fundamentals remain solid with very few misalignments that could derail it, at least for now.

2024 was about as good as it gets in the equity markets – with the BGEP up 31% and the broader market as a whole posting double digit gains. Underneath the surface, we believe that there are three main drivers of the year’s solid returns. We discuss them below in our market review and outlook.

Stocks rallied in 2024, delivering a second consecutive year of gains exceeding 20%, as investors embraced cooling inflation, falling interest rates and the prospect of lower corporate taxes under a second Trump administration.

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

Continuing last year's trend, our 2025 outlook shows fixed income benefiting from high rates, while equities face a narrowing edge over risk-free investments.

Gain insights into 2025’s top tech trends and market opportunities, and what experienced investors should consider for smart tech investments.

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

December's market activity highlights the need for caution in the near term.

One of the benefits of purchasing property as an investment is the tax benefits that can come with it – both while you own it and after you sell. Applying tax-efficient strategies will help you make the most out of your investment property.

We prefer equities over fixed income, in particular U.S. equities as the outlook for the U.S. economy is solid and promising.

Annuities can provide a guaranteed lifetime income stream in retirement, no matter how long you live. They thrive under high interest rate environments and are currently offering the highest payouts seen in years.

Today often kicks off the Santa Claus rally. Stocks rose and volatility is down sharply from recent peaks, but yields keep rising, which has hurt the non-tech part of the market.

The Federal Reserve’s recent meeting signaled a notable shift in its monetary policy approach.

For 2025, the financial markets will be entering a new chapter in the ever-evolving policy story. Indeed, not only will the U.S. economy be operating under a new political and attendant fiscal backdrop, but it will also be in the midst of a different monetary policy setting—rate cuts, not the after-effects of rate hikes.

As investors continue to step out of cash and potentially rebalance out of equities following their strong performance, we expect bonds to play a larger role in diversified portfolios next year.

It’s that time of year when Wall Street polishes up its crystal balls and predicts next year’s market returns. Since Wall Street never predicts a down year, these forecasts are often wrong and sometimes very wrong.

If you happen to be a Bitcoin skeptic, you’re not alone. A recent Pew Research survey found that 63% of Americans are not confident in the reliability or safety of cryptocurrencies in general.

As we near the end of 2024, researchers, businesses, and investors have begun to question the overheated artificial intelligence sentiment.

Since we are not going to publish Weekly Economics on December 27, 2024, we will take this opportunity to say farewell to 2024 and to all our readers, we want to wish you a very happy holiday season and a very prosperous New Year 2025!

Macroeconomic uncertainties prompted the Federal Reserve to signal a slower pace of policy rate cuts in 2025 and beyond.

This brief market commentary will run through some stats and provide context to the market’s recent fluctuations.

As the year comes to a close, we revisit some of the key market themes and moves for 2024 and the year ahead.

Despite the expectation of rate cuts, a push-pull dynamic could exist if high inflation continues, opening the door for short-term bonds.

With economic growth rising at a stronger rate than expected for this part of the cycle and inflation holding above the 2.0% target, the Fed appears more cautious about the need for rate cuts.

With persistent inflation and a resilient economy, the Fed's updated projections show two rate cuts next year.

On Friday December 6th, the U.S. stock market pushed to the most extreme level of valuation in U.S. history

As cash yields dwindle, the case for fixed income becomes increasingly compelling.

In his 2025 investment outlook, Head of U.S. Fixed Income Greg Wilensky outlines the most likely scenarios for the U.S. economy and which asset classes he believes will be best positioned under each scenario.

A conversation with our stock selection team, part two.

Brent Olson and Thomas Ross, fixed income portfolio managers, believe that high yield bonds offer comfortable driving for now, but investors might need to negotiate more difficult terrain later in 2025.

We continue to agree with market pricing following the ECB’s latest rate cut, but see additional downside risks to growth post-U.S. election.

We expect gears to shift as potential policy changes under the Trump administration add to uncertainty about inflation and the global economy.

How a diversified liquidity strategy might help time-strapped corporate treasurers reduce vulnerabilities and improve adaptability in uncertain markets while maintaining access to cash.

In his 2025 investment outlook, Portfolio Manager John Lloyd shares his views on the attractiveness of a multi-sector approach to fixed income investing.

"Trump Trade 2.0" fueled U.S. equity and digital asset rallies, while real assets faltered under a strong dollar.

Time to refresh before 2025? The 2025 global market outlook offers compelling opportunities abroad, with the active ETF TOUS a route therein.

The transition from bank-dominated lending to a diversified financing ecosystem offers unprecedented opportunities for private credit investors.