Source: Bloomberg, Inc.
Key Takeaways:
Equity Strategy
With trade uncertainty and recession probabilities increasing; we expect valuation multiples to reset lower to more historic levels and will continue to assess portfolio shifts after the shock and surprise that the trade war has inflicted on capital markets. Our investment process remains consistent as we look for attractive entry points for profitable, high-quality, long-term investment ideas.
Fixed Income Strategy
As of April 8, 10 year investment grade corporate bond spreads to the treasury have widened by 40 basis points and have moved to August 2024 levels. In short, the bond market is still not pricing a recession but is pricing a stagflation scare, with stagflation indicating slower GDP growth with higher inflation. The corporate bond market is now offering yields greater than 5% for maturities greater than 7 years. Fixed income allocations have finally become a hedge to equity market weakness during this trade war correction.
Click here to read the entire Q1 2025 Market Review.
Non-Deposit Investment Services are not insured by FDIC or any government agency and are not bank guaranteed. They are not deposits and may lose value.
