Bonds Big Message
Disclaimer: Your capital is at risk. This is not investment advice.
Markets rebounded in May as easing trade tensions reignited global risk appetite. International stocks surged ahead, leaving U.S. equities trailing. A weaker dollar and rising Treasury yields pressured Wall Street, while Europe outperformed amid tariff delays.
Despite the rally, fund managers remain cautious—a sentiment that may ironically support further gains. The AAA Model held its ground, rotating from UK corporate bonds to EU equities, and maintaining a cautious nod to resilient Chinese markets. Recession fears have faded for now, but rising rates and lingering inflation risks keep markets on edge, even as hopes shift from hard landings to softer ones.
