Chinese equities with artificial intelligence (AI) exposure have surged since AI start-up DeepSeek briefly rattled U.S. tech stocks with its low-cost, open-source model that rivaled the performance of its much larger U.S. rivals at a fraction of the cost. Simultaneously, over the last month, China has been a focal point in tariff and trade sanction conversations from the White House. While we acknowledge tariffs are a major factor and could be a headwind, they are unlikely to stifle the Chinese economy. Tariff actions have arrived softer than expected so far, and there is some optimism that China can strike a deal with the U.S. to avoid the w

The U.S. Treasury market is entering a significant transition period in 2025, facing both structural adjustments and all-too-familiar policy discussions. As the Federal Reserve's (Fed) shift from a zero interest-rate policy (ZIRP) coincides with a substantial $7.5 trillion refinancing cycle, markets are also preparing for another round of debt ceiling negotiations. For investors, this environment presents compelling opportunities in Treasury securities: Yields above 4% across much of the Treasury curve offer attractive risk-free returns (although market volatility is expected to remain elevated), with potential for capital appreciation if

The U.S. equity market hummed along in the final quarter of 2024, although not without headwinds at the macro level from shifting Federal Reserve (Fed) rate cut bets, dampened disinflation traction, and policy proposals from the now-sitting U.S. administration. Amid a flurry of headlines from Wall Street to Washington, many market watchers have asked, as they do every quarter, “How was this environment navigated?” Well, investors can turn to 13F filings for answers.  

A “13F filing” refers to the form submitted each quarter to the Securities and Exchange Commission (SEC) by institutional investme

As we move deeper into 2025, LPL Research's Strategic and Tactical Asset Allocation Committee (STAAC) has updated its Capital Market Assumptions (CMA) and Strategic Asset Allocation (SAA) to provide guidance on long-term asset allocation and strategic market views over the next three to five years. 

A Time to Reduce Risk 

LPL Research is reducing risk in their portfolios with long-term investment horizons. The risk-reward trade-off for both stocks and bonds is being challenged by a slowing-growth environment, elevated inflation, and a "higher-for-longer" interest rate outlook. The expansion of equity