In the ongoing debate between active and passive management, there is a clear divergence in performance between equities and fixed income. Recent data reveals how active management excels in the bond market, presenting a strong case for investors aiming to achieve asymmetric risk/return profiles.

When a stock reaches an all-time high, there is no overhead resistance based on previous price levels because it hasn't traded above that price before. But there are several factors to consider regarding selling pressure and market behavior:

Inflation is close to the Federal Reserve’s target. While this doesn’t mean prices are going down, they are rising less quickly, and is why the Fed plans to lower rates.

With starting yields nearly two times higher than the average yield since 2010, investors could stand to benefit from attractive return potential in fixed-income/bond investments going forward.

As you evaluate your investment strategy, keep in mind the importance of adaptability and informed decision-making. The bond market holds substantial potential, and with the right approach, you can enhance your portfolio's resilience and performance in the months ahead.

After a central bank increases interest rates the economy often enters a recession in the years that follow. Historically bonds have performed well whether a recession occurs or not.

Navigating volatility through the lens of the VIX and SPX options presents tactical investment managers with unique opportunities. By understanding the asymmetries in risk and reward, traders can position themselves to capitalize on volatility while effectively managing downside risks. Continuous monitoring of market conditions and adaptability in strategy will enhance the ability to thrive in volatility-driven environments.

Tactical investment managers should be mindful of how these shifts in unemployment rates can impact various sectors. Historically, lower interest rates can lead to increased market activity, particularly in interest-sensitive areas such as real estate and consumer discretionary spending.

The relationship between the VIX and SPX options is a cornerstone of effective risk management in trading and investment. By understanding this dynamic, traders can better anticipate market movements, implement strategic hedging techniques, and optimize their portfolios for changing volatility conditions. Monitoring market indicators and employing various trading strategies based on this relationship can significantly enhance your risk management practices.

For asymmetric investment returns, when examining the yields on the long end of the yield curve, it's essential to consider three critical factors: growth expectations, inflation expectations, and term premium. Each of these elements plays a significant role in determining the equilibrium yield for long-term bonds.