Leaders rotate in and out. No single fixed income sector consistently dominates performance over time, and strong performance in one sector rarely carries over from one year to the next. For example, emerging markets local debt and global bonds — two of 2024’s worst performers — rebounded strongly in 2025. Timing fixed income markets and predicting which sector will lead next is extremely difficult.

Market volatility is unsettling. When the market waters get rough, investors can be tempted to jump out to try to avoid short-term losses. But historically, some of the market’s biggest gains occur when volatility is highest, making them difficult to predict and easy to miss.

Positive correlation between risk assets and government bonds breaks the roles these asset classes play within a portfolio. Here, we outline why correlations have risen, and how investors can seek to limit the impact on their portfolios.

Renewed hostilities in the Strait of Hormuz are once again threatening the energy flows the global economy depends on — and oil prices are already responding.