Markets Embrace Prospect of Smaller Government

The post-global financial crisis tailwinds of ample liquidity, globalization and abnormally low interest rates are becoming headwinds at a time when tariffs may drain liquidity.

Both equity and debt investments are claims on the same underlying assets of a company and understanding their relationship and potential correlations is crucial. Prepared investors must recognize these connections and potential blind spots, using comprehensive stress-testing and inter-disciplinary collaboration to navigate uncertainties in the market.