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2025 Q4 MACRO OUTLOOK
Vantage Point: Threading The Needle
Welcome to another edition of Vantage Point, the quarterly economic and markets outlook from the BNY Investment Institute.
Top picks
Last week’s Consumer Price Index report, a widely used indicator of inflation in the U.S. economy, showed growth of 3% in September, which was above 2.9% in August but less than expected. Despite the modest increase, various categories have shown signs of stabilization. What does this mean for inflation going forward?
Is there a way of accessing the attractive yield of global investment grade credit with lower volatility? This is a question that Insight Investment increasingly hears from risk-constrained investors as cash rates fall.
The S&P 500 is up 14% year to date after gaining more than 20% annually over the past couple of years. Valuations are certainly elevated, but we believe the market is in a new world where higher multiples are normal rather than stretched.
Despite elevated volatility and low spreads, attractive yields and strong inflows are supporting Europe’s corporate bonds, writes Insight Investment portfolio manager Fabien Collado. Here he outlines some of the opportunities and key market sectors offering investors the potential for diversification and selective value.
The value of investments can fall. Investors may not get back the amount invested.
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