Equity vs. Fixed Income

Helping investors build diversified portfolios

Commentary around the death of the 60/40 portfolio has increased in recent months. Whether this structure has become obsolete, each investor can decide. However, the core idea of the 60/40 portfolio was efficient diversification - this notion is very much alive. The collection of insights below brings some of the latest research on equities and fixed income.

ON EQUITIES

U.S. Equities Market Attributes November 2022 (S&P Dow Jones Indices)

What factors have contributed to the U.S. equity market's performance in November 2022? Find out in the latest analysis from S&P Dow Jones Indices.

Podcast: The Most Vital Question for Investors (Baillie Gifford)

Kirsty Gibson of Baillie Gifford’s US Equities Team discusses why equity allocators should be prepared for the unexpected by always asking themselves "What if…?"

After Goldilocks, Which Bear – Market – Will Prevail? (T. Rowe Price)

For compliance reasons, this paper is only accessible in certain geographies

Global equities have been through a volatile year. Can investors expect the U.S. market to emerge with a clearer outlook in the coming months?

Dividends: Building Resilience in A New Market Reality (Capital Group)

For compliance reasons, this paper is only accessible in certain geographies

Investing in high-quality dividend paying stocks can be a game changer for investors, especially during uncertain times.

Interest Rate Sensitivity in the Cross-Section of Stock Returns (CAIA blog)

The expansion of the Fed's balance sheet has incentivised investors to begin assessing equities through a lens of “bond-likeness”.

ON FIXED INCOME

What Rising Rates and Inflation Mean For Private Debt (NN IP)

This paper looks at how the changing inflation regime and tighter monetary policy have impacted the growing private debt sector.

Private Credit In Focus (BlackRock)

For compliance reasons, this paper is only accessible in the United States and Canada

Global investors find themselves in a crucial moment of examining their allocations to private credit. Has the long-term appeal of the asset class changed?

Global Fixed Income: Volatility and Uncertainty Here To Stay (MFS)

For compliance reasons, this paper is only accessible in certain geographies

Fixed income still has appeal for allocators. However, its role in portfolios must be reassessed in the light of a new market regime defined by more volatility.

Why Shrinking Central Bank Balance Sheets is an Uphill Task

Years of easy monetary policy have left the financial sector more vulnerable, with many actors dependent on continuous liquidity provisions from the central banks.

SPECIAL REPORT

Fixed Income: Are the rules changing? (Special Report, 2022)

For compliance reasons, this paper is only accessible in certain geographies

This Special Report tackles some of the key challenges in fixed income. A shifting inflation and monetary policy regime has investors rethinking allocations. The sustainability challenge remains, with investors able to make a real difference.