In an environment where global markets refuse to bend to the macro turbulence, three themes stand out with the second half of 2025 underway:

• the backdrop for solid, long-term returns for fixed income remains, as do the uncertainties that will likely rattle markets over the near term. If serious downside risks materialize, bonds should outperform cash and equities;
• recent performance dispersion indicates that just buying bonds won't do; success will hinge more than ever on buying the right bonds in the right maturities and market sectors;
• markets' overreactions and course corrections offer a clear lesson— don't confuse extreme market movements with changes in fundamental market trends.

In "The Bull Market Climbs a Wall of Worrying Headlines," Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds, looks at the specific attributes of this bull market of distinction as it enters the second half of the year.

"Opportunities with U.S. Exceptionalism in Question," by Katharine Neiss, PhD, Deputy Head of Global Economics & Chief European Economist, explores the evolution of U.S. exceptionalism and the potential alternatives that could emerge.