As someone who views corporate finance through a pragmatic lens, I’ve been closely watching the current surge in capital expenditures (capex) tied to artificial intelligence (AI). When a company spends massive amounts of free cash flow and takes on increasing debt, does that lead to a positive outcome for investors?
Today we’ll look at government debt as a global problem because that’s what it is. Some governments are somewhat less profligate, but very few have clean hands on this. All of us are in the mud.
We expect the US economy to remain resilient in 2026, providing a constructive backdrop for risk assets, as well as corporate and municipal credit. But the mix of macro uncertainty, policy division and elevated deficits could widen the range of potential outcomes and increase rate volatility—especially as the Federal Reserve approaches the neutral rate.
Each December, those of us in the investment business lay out our expectations for the coming year. We do so with the knowledge that no one has a clear crystal ball (it’s one of the reasons I like Oprah’s quote).
Pioneered by Harry Markowitz's Modern Portfolio Theory, the classic 60/40 portfolio allocates 60% to stocks for growth and 40% to bonds for income and risk mitigation. This strategy is predicated on the idea that these two asset classes, when combined, should have a less-than-perfect correlation to optimize risk-adjusted returns.
Once considered a tactical niche product for nervous investors, buffer ETFs are reshaping how financial advisors approach risk management.
Investors are navigating not just uncertainty, but an unstable environment influenced by tariffs and inflation, among other factors. While volatility may increase, there is likely room for another solid year in 2026, especially for fixed income and international stocks
The economic narrative last week was shaped by a highly anticipated Federal Reserve rate cut, which came against a backdrop of conflicting signals in the labor market.
This year has witnessed some of the most significant policy shifts in recent memory. Economic, strategic and fiscal norms have all been challenged, creating a level of uncertainty that has been hard keep up with.
Imagine headlines flashing news of 20,000 jobs lost each month from US payrolls. Consumer and investor sentiment would crater and the pressure on the Federal Reserve to keep cutting interest rates would be intense.
Around this time, most mutual fund and exchange-traded fund (ETF) providers release estimates of their upcoming distributions. We track and aggregate these early numbers to help you better prepare for what to expect.
The Federal Reserve announced a new round of quantitative easing (QE) on Wednesday. It also cut the federal fund rate by another 25 basis points.
The Federal Reserve lowered its policy interest rate by 25 basis points, as widely expected. However, Fed Chairman Powell hinted at a pause ahead, and there were several dissents.
Oracle's recent earnings report offered little comfort for those concerned about the cost of AI infrastructure, revealing unwelcome surprises like a $10 billion quarterly cash burn and significantly increased capital spending.
In their latest SPIVA report, S&P discussed the underperformance of active funds relative to index blends across various assets.
The Treasury Department is preparing to release a corporate tax workaround that would deliver large tax savings to companies including Salesforce Inc. and Qualcomm Inc.
Foreign corporate insiders would have to reveal when they buy or sell company stock under a provision included in the House-passed defense authorization bill, a move backers describe as closing a loophole that hurts US investors.
The dueling suitors for Warner Bros. Discovery Inc. have had a rough week. Will this rule out an auction? Don’t count on it.
Oil held near its lowest close in almost two months, as concerns about an oversupply offset bullishness in wider financial markets.
With Elon Musk’s SpaceX eyeing an initial public offering that could value the company at over $1 trillion, investors looking for exposure to the space industry can turn to a space ETF that has already delivered outsized returns in 2025.
The Federal Reserve delivered a widely expected 25-basis-point (bp) rate cut in December, then signaled a more data-dependent path ahead. Barring an economic shock, we probably won’t see another rate cut until the second half of next year.
Value seems to be having a moment — over the last six weeks value style and value factor indexes (a subtle but real nuance, as we will show) are outperforming representative broad market and a representative growth style index.
ClearBridge Investments believes the outlook for infrastructure in 2026 remains robust, driven by the accelerating demand for power and data fueled by AI.
Silver jumped for a fourth day, as exchange-traded fund inflows, momentum-following and physical market tightness pushed the white metal toward its best year since 1979.
International stocks could be poised for another strong year in 2026 due to accelerating global growth, attractive valuations and the potential for dollar weakness.
Signed into law in 2022, SECURE 2.0 legislation pursued many of the key themes of the original SECURE Act from 2019, including expanding access to retirement accounts and promoting plan participation.
After a "mini swoon" in November driven by AI bubble concerns, market tranquility has returned this December as investors await the Fed's widely anticipated 25 basis point rate cut and Chair Powell's subsequent remarks.
U.S. equities edged higher last week, approaching all-time highs, fueled by steady consumer spending reflected in strong Black Friday retail sales, though data indicated consumers are increasingly prioritizing value.
The Federal Reserve concluded its last meeting of 2025 with another quarter-point rate cut, while maintaining its outlook for only one cut in 2026.
Despite the concern post-2024 election about rising U.S. deficits and a potential return of "bond vigilantes," the supply side of the Treasury market has remained stable, with deficits settling near the $1.8 trillion baseline.
The U.S. economy depends on consumers buying stuff. Persistent price inflation forced Americans to blow through their savings and then turn to credit cards to make ends meet.
Walt Disney Co. agreed to invest $1 billion in OpenAI and license iconic characters like Mickey Mouse and Cinderella for use on the startup’s short-form, artificial intelligence video platform.
Gold wavered as traders mulled the Federal Reserve’s outlook for interest rates. Bullion gained as much as 0.5% in US trading before paring some gains, while Treasury yields and the dollar declined.
With a third consecutive rate cut bringing the Fed Funds range to 3.50%–3.75%, the Fed may pause for now as it reassesses the effectiveness of its “risk management” approach amid mixed economic signals.
US Treasuries rose after the Federal Reserve lowered interest rates by a quarter-point for a third straight meeting and left the door open to additional policy easing in 2026.
The launch of multi-token crypto products (i.e., crypto index ETFs) signals that many issuers believe the next growth phase in crypto ETFs will be driven by investors who want a rules-based basket approach rather than single asset calls.
Oracle Corp. shares fell the most in more than 24 years after the company reported a jump in spending on AI data centers and other equipment, rising outlays that are taking longer to translate into cloud revenue than investors want.
The rotation from technology stocks has investors, at long last, scouring one of the least loved corners of the market: energy producers.
It appears the holiday shopping season is being sucked into the massive Debt Black Hole floating through the global economy.
Many U.S. companies now find their defined benefit (DB) plan in surplus and are exploring practical ways to use that excess funding. While emerging legislation may one day allow transfer from DB to defined contribution (DC) plans, some sponsors are already taking creative action.
The dot-com bubble burst in 2000. Now, 25 years later, anxiety abounds about the potential for a similar AI bubble burst and resultant crash.
The year 2025 exemplifies the prevailing regime — markets driven less by fundamentals and traditional business-cycle dynamics and more by fiscal and monetary policy influence. Today, policy decisions have emerged as one of the most impactful forces driving market direction.
After a turbulent start to 2025 defined by US policy shocks, attention shifted to AI optimism and corporate fundamentals, with earnings and capex intentions often eclipsing traditional data releases. Despite these twists, returns were solid across asset classes.
U.S. consumers are seeing a tangible rise in their monthly utility bills, with the average residential cost increasing to $142 in 2024, double the general inflation rate.
Growth, growth, and more growth — that’s been the common refrain in the current market environment. However, peeking from behind the curtains is the quality factor. While it has yet to receive the full spotlight in 2025 relative to growth, it’s due for a breakout performance (potentially in 2026).
ClearBridge Investments believes emerging market equities have turned a corner, showing strong performance after years of lagging returns.
We believe the macro environment will continue to be unstable given policy crosscurrents and a wobbly labor market, but stocks can likely churn higher given a firmer earnings backdrop.
The Federal Funds Rate (FFR) is the interest rate banks charge each other to borrow money overnight. It's set by the FOMC and is one of the Federal Reserve's primary tools to implement monetary policy and is a key driver of economic activity. This video examines the Federal Funds Rate and reviews the Fed's interest rate meeting on December 9-10th, 2025.
Amid ongoing economic and geopolitical uncertainty, investors are increasingly turning to commodities for their diversification potential. But what’s next? Join the experts from Aberdeen Investments and Bloomberg for an interactive webinar.
