Reproduced with permission from AllianzGI

America’s economy is riding high into the new year, lifting investor expectations skyward. Our panel discusses what could propel (or derail) markets in 2025.

Reproduced with permission from AllianzGI

As investors prepare for the effects of higher-for-longer rates and a new administration in 2025, we offer five themes we think will drive fixed income markets in the first half of the year.

After a bumpy start, 2024 emerged as a year of resilience for fixed income markets, with strong returns and a promising outlook for U.S. corporate bonds.

M&A was already rebounding and could accelerate more, thanks to Trump’s focus on deregulation. Tech, investment banks and small caps may be beneficiaries.

Reproduced with permission from AllianzGI

Reproduced with permission from AllianzGITwo-Minute Tech

Strong economic growth coupled with inflation risks from potential policy shifts have paved the way for a prolonged period of higher interest rates. That could be a good thing for fixed income investors.

Our long-term return expectations serve as key inputs into strategic asset allocation for multi-asset portfolios and provide context for shorter-term forecasting.