Last Week at a Glance
Global equities sold off late last week amid rising bond yields and inflation concerns tied to the ongoing closure of the Strait of Hormuz.
Equities
Has Artificial Intelligence Made Market Concentration Less Risky?
No. Artificial intelligence has changed the shape of market concentration more than its substance.
Last Month at a Glance
Global equities rebounded in April, more than offsetting March’s sell-off despite a renewed oil shock.
VantagePoint: The Rearview Mirror Problem
The conditions that rewarded concentrated exposure to US growth and technology stocks for much of the past decade are becoming less dependable. With valuations stretched and macro and geopolitical risks less benign, investors may be better served by reducing crowded exposures and rebuilding diversification across a broader set of opportunities.
Does the Iran War Change Our View That Equity Market Broadening Will Continue?
No. The Iran War does not alter our conviction that the broad equity rally that began in 2025 will continue.
Last Quarter at a Glance
Global equities declined in first quarter as early gains reversed sharply in March following the outbreak of the Iran War and the associated energy shock.
Germany’s Fiscal Boost Remains a Tailwind Despite Near-Term Risks
German equities entered 2025 with strong momentum, supported in part by a sharp shift in Germany’s fiscal outlook. After years of underinvestment, the government announced materially higher spending on infrastructure and defense. However, that momentum faded through 2025 into 2026, and German equities stalled.
The Iran War: Impact on Energy, Inflation, and Markets
The war in Iran has triggered a historic disruption in the Strait of Hormuz, driving oil & gas prices higher and exposing vulnerable energy-importing regions. This shock is fueling concerns over higher inflation and rising bond yields, creating a volatile environment where commodities lead while global equities and traditional bond diversifiers underperform.
Will the Iran Conflict Trigger a Pandemic-Style Inflation Spike?
No, we do not think this is the likely outcome. While the path forward is highly uncertain, several key factors suggest that a repeat of pandemic-era inflation is unlikely.
US Manager Universe Statistics: Fourth Quarter 2025
This publication presents manager performance for 37 asset classes and substrategies, showing the median, mean, and key percentiles of return. Relevant indexes for each asset class are also included to provide market context.