BNY Investments
The latest research and outlooks in the ProAllocate library
- Macro
A Democratic Sweep: Oversight, Investigations, And Potential For Compromise
A Democratic sweep of Congress in the 2026 midterms is expected to boost renewable energy and healthcare while increasing scrutiny of AI, crypto and defense spending, the firm argues. Tariffs and reshoring policies are likely to persist regardless of the political shift, with fiscal gridlock and shutdown risks continuing.
- Portfolio Construction
Play the long game
Analysis of returns since 1975 shows a 60/40 equity-bond portfolio delivers similar average returns over short and long holding periods but with substantially lower volatility over longer horizons. The piece argues investors should ignore short-term headlines and stay diversified and invested for the long term.
- Equities
US equity income in focus: Navigating a volatile inflation and rate environment
BNY Investments argues persistent inflation and volatile rates favour value stocks with durable cash flows and pricing power over expensive growth names. Its US Equity Income strategy seeks to exploit this shift through disciplined, flexible stock selection focused on dividend-paying, undervalued companies.
- Fixed Income
Municipal Bonds: Are They Having A Moment?
Insight Investment argues municipal bonds offer historically high tax-equivalent yields, strong credit quality, and low default rates, making them attractive yet overlooked in core fixed income portfolios where active management can exploit pricing inefficiencies.
- Fixed Income
Le Déluge: On the brink of a French fiscal crisis?
Widening French bond spreads reflect fiscal deterioration and rising odds of a Marine Le Pen presidency in 2027, which the asset manager argues will likely keep unsustainable debt dynamics in place. It expects French spreads to widen further before offering attractive entry points for long-term investors.
- Fixed Income
Contained contagion?
Widening U.S. high yield spreads are concentrated among the lowest-quality issuers, not higher-quality credits, suggesting normal risk repricing rather than systemic contagion. The outlook for the broader U.S. economy remains constructive.
- Fixed Income
How might AI investment shape global credit markets?
Insight Investment warns that AI-driven capital expenditure could push investment-grade credit issuance to record levels, risking wider spreads and index concentration, while high-yield markets remain comparatively insulated. The firm argues careful credit selection is essential to navigate emerging risks and opportunities from this shift.
- Equities
Staying Invested: After The Worst Day, The Best Day May Come Quickly
BNY Investments shows that the S&P 500's best trading days often follow closely after its worst, arguing that market-timing exits and re-entries is highly risky. It concludes investors are better served staying fully invested to capture rebounds.
- Equities
Can the bull run in corporate margins continue?
Corporate profit margins have hit record highs despite elevated inflation and rates, with U.S. companies now outpacing European peers by the widest margin gap on record. The report expects margin strength to persist, moderating pace aside, supporting continued preference for U.S. large-cap equities.