Reflecting a surge in investor risk appetite, the second quarter of 2025 saw high-beta stocks dramatically outperform low-volatility peers. This "risk-on" sentiment has perplexed some strategists, especially given the significant economic uncertainty.
The Hunt for Value Beyond U.S. Shores
U.S. equities continue to trade at expensive levels, with the S&P 500's forward price-to-earnings ratio sitting at an approximately 50% premium to international stocks.
The Big Short: Investor Consensus Turns Against the Dollar
Reflecting a powerful consensus among professional investors, the net overweight positioning in the U.S. dollar has plunged to its lowest level in two decades.