Emerging market (EM) corporate debt is often compared with the US high-yield market as both fall into the category of growth fixed-income assets. However, they differ significantly in structure and risk profile. 

We live in extraordinary times. President Trump’s sweeping trade tariffs, announced on 2 April, have dealt a major shock to the global economy, challenging the international trade system as we know it.

The early days of the Trump administration have brought sweeping tariff announcements. 

Whether you’re a Republican, Democrat, or none of the above, most people can probably agree that President Donald Trump’s second presidency has been off to an eventful start.

This year has started with a barrage of dramatic and often contradictory headlines, throwing markets into a tailspin.

In our 2025 Market Outlook, we noted that the market was priced to perfection, trading at a relatively rare premium to fair value, and asked “Will it last?” We noted that positioning had become increasingly important and recommended investors to overweight value stocks as they were attractively valued.

At their March meeting, Federal Reserve officials left the policy rate unchanged at 4.25%–4.5% and signaled further patience on rate cuts as they navigate greater uncertainty about the economic outlook. 

This week, the S&P 500 fell -4.3%, marking its first 10% correction in two years as investors reassess the market outlook amid tariff announcements.

Two pushbacks I get to the view that non-US equities are likely to outpace US equities over the next several years is 1) US economic exceptionalism and 2) overwhelming capital flows into US passive investment strategies. 

In this month’s Allocation Views, our Franklin Templeton Investment Solutions team believes uncertainty around US government policy alongside an uptick in geopolitical tensions has subdued risk assets despite a supportive macroeconomic outlook.

This analysis is by Bloomberg Intelligence Chief Equity Strategist Gina Martin Adams and Equity Strategy Data Analyst Wendy Soong. It appeared first on the Bloomberg Terminal.

In a year defined by uncertainty—wars in Europe and the Middle East, rising U.S.-China tensions, and a new U.S. leadership signaling major policy changes—the world’s best-performing stock markets in 2024 weren’t to be found among the usual safe havens.