Stocks continued to climb the wall of worry last week and shrugged off tariff headlines, inflation volatility, and signs of a slowdown in retail spending. President Trump reinstated a full 25% tariff on all steel imports — effectively closing any loopholes and exemptions — and increased the tariffs on aluminum imports to 25%. Most metals rallied on the news as fear over forthcoming tariffs on a broader range of metals sparked a surge in demand. The White House also announced plans to impose reciprocal tariffs on a country-by-country basis to “correct longstanding imbalances in international trade and ensure fairness across t

Equity markets are off to a solid start in 2025. Despite an array of headline risks, the S&P 500 has climbed over 3% on the year and even notched a record high last month. Within the index, returns have also become more dispersed, pointing to a growing opportunity set for active management.  

The rising dispersion in returns and relatively low correlation among S&P 500 stocks has become increasingly apparent on the CBOE S&P 500 Dispersion Index and the CBOE One-Month Implied Correlation Index. The dispersion index compares the prices of S&P 500 constituent stock options and S&P 500 index options to q

Key Takeaways

• Annual inflation accelerated up to 3.0% in January from 2.9% in the previous reading. 

• Shelter costs rose 0.4% in January, accounting for nearly a third of the headline increase. 

• Energy prices rose 1.1% over the month from the rise in gas prices. 

• Bird flu was a major factor in hotter food inflation, causing egg prices to rise 15.2%, the largest increase in roughly a decade and pushing annual prices up 53%.  

• Large numbers of underinsured and uninsured drivers have impacted the auto insurance market. The motor vehicle insurance index rose 2.0%

Since the 2021 peak in deal multiples and a banner year for performance, the private equity industry has encountered several challenging years for fundraising and a slew of new issues to deal with. The 2022 rise in interest rates was the initial headwind, as investment sponsors were faced with the highest borrowing costs in over a decade. However, a tepid initial public offering (“IPO”) market, valuation adjustments, and uncertainty surrounding how artificial intelligence (“AI”) may upend existing investments only added to an already complex landscape. As we look ahead to the remainder of 2025, the areas below are some