INSIGHTS

Explore how an absolute-return approach may offer flexibility as persistent inflation challenges traditional portfolio assumptions and reshapes opportunities across markets.

Sticky inflation and resilient growth have revived monetary tightening, increasing the risk of higher-for-longer rates and near-term volatility. We continue to believe economic resilience and strong corporate profits should continue to provide a favorable backdrop for stocks, and would use periods of market weakness to add selectively to equities. Additionally, owning real assets can help hedge against inflation.

Value equities have historically shown resiliency during higher inflationary periods versus their growth counterparts. With inflation remaining elevated, we believe that value opportunities continue to be a compelling option for portfolio diversification and potential stability.

The U.S. Federal Reserve’s (Fed) 25 basis point (bp) rate hike on September 16 marks the beginning of its effort to bring inflation back toward its 2% target. Under Chair Warsh, the Fed’s actions are now aligning with its hawkish rhetoric.

AI investment enthusiasm is rising, but returns will vary widely. Long-term value is more likely where practical, commercially viable use cases are already beginning to emerge, says Walter Scott’s George Dent.

Checkpoints is a comprehensive monthly chartbook highlighting major top-of-mind themes that could shape financial markets in the near term. In addition to the broader macroeconomic discussion, Checkpoints delivers detailed views on major asset classes, including global equities, fixed income and real assets.

The U.S.’ extraction of President Maduro from Caracas on January 4 could alter the trajectory of geopolitics in the Americas.

BNY's commitment to insight and perspectives comes to life through our investment and market leaders who gather quarterly to debate the key issues shaping markets today.