More of our insights
Too good to be true?
Why fears of “Global Financial Crisis Part II” are a suboptimal reason to hold on to cash
![](https://fsinvestments.com/wp-content/uploads/2022/04/Screen-Shot-2022-04-25-at-4.26.39-PM.png?w=250&h=150&crop=1)
Diversification is key as the Mag 7 overshadows market
The Magnificent 7 tech stocks increasingly dictate the risk and return profile of the S&P 500, emphasizing the importance of diversification.
![Line chart shows the steadily rising contribution of the Magnificent 7 to the monthly volatility of the S&P 500 as these stocks (Microsoft, Apple, Amazon, META, Invidia, Tesla and Google) represent 32% of the Index. Investing in the S&P 500 increasingly implies a bet on their performance.](https://fsinvestments.com/wp-content/uploads/2024/06/COTW_2024-06-07_thumbnail-247px.jpg?w=250&h=150&crop=1)
Negative equity risk premium highlights investor complacency
The current negative equity risk premium suggests markets may not be sufficiently compensating investors for today’s market and economic risks.
![Line chart shows equity risk premium, a common way for analysts to decipher the level of excess return investors demand to assume equity market risk. It turned negative in 2H 2023, which may highlight a level of investor complacency as markets have rallied this year.](https://fsinvestments.com/wp-content/uploads/2024/05/COTW_2024-05-31_thumbnail-247px.jpg?w=250&h=150&crop=1)
Private credit loss rates don’t support draconian headlines
Direct lending loss rates compare favorably to much of the leveraged finance market, as this week’s chart shows.
![Column chart that shows direct lending’s historical loss rate since 2005 compares favorably to many other parts of the leveraged finance markets. The direct lending loss rate of -1.03% is roughly in line with leveraged loans (0.92%), but below that of high yield bonds (-1.49%) and commercial and industrial bank loans (-2.30%).](https://fsinvestments.com/wp-content/uploads/2024/05/COTW_2024-05-22_thumbnail-247px.jpg?w=250&h=150&crop=1)
The Takeaway with Troy Gayeski: Embrace alternatives or be left behind?
Our Chief Market Strategist dives into the latest mega trends, including why exploring alternatives could be essential to staying competitive.
![](https://fsinvestments.com/wp-content/uploads/2024/05/The-Takeaway_img_2xInsights_1442x1004.jpg?w=250&h=150&crop=1)
Private credit valuations proven conservative over time
Private credit investors’ realized losses have been about half that of unrealized markdowns during the past three periods of market stress.
![Close up thumbnail of a column chart](https://fsinvestments.com/wp-content/uploads/2024/05/COTW_2024-05-17_thumbnail-247px.jpg?w=250&h=150&crop=1)