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.
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.
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.
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.
As private credit grows, underwriting standards remain healthy
Lenders requiring more equity and less leverage, suggesting healthy private credit lending standards.
As advisors redeploy cash, alternatives are in focus
Advisors expect to reduce their clients’ cash allocations this year. Alternatives, multi-asset and real asset investments are among the major beneficiaries.
