Concerns about the sustainability of U.S. fiscal policy have moved back into the investment spotlight. Over the past week, both multilateral institutions and prominent policymakers have raised warnings about the potential implications of America’s expanding debt burden for Treasury markets. While these concerns are directionally valid, we believe recent calls suggesting a structural loss of appeal for U.S. Treasuries are premature and risk overstating near-term risks.

Rising Debt Issuance and the IMF’s Warning

The International Monetary Fund (IMF) cautioned last week that the accelerating pace of U.S. Treasury is

As we wrote in our recent Rate and Credit View, the case for global bonds has strengthened as the structure of fixed income markets — and the sources of risk within them — have become increasingly asymmetric. The U.S. bond market represents less than half of global fixed income outstanding, yet many portfolios remain overwhelmingly concentrated in U.S. Treasuries and credit, effectively tying outcomes to a single fiscal authority, a single central bank, and domestic yield curves. Expanding beyond U.S. borders meaningfully enlarges the opportunity set. Non ‑ U.S. developed markets and emerging economies operate under differentiat

Over the past year, LPL Research’s Strategic and Tactical Asset Allocation Committee (STAAC) has emphasized that tactical investing does not require constant activity. Instead, it requires preparation, patience, and the discipline to act only when the expected benefit of a change clearly outweighs the risks. We have made some changes to our Tactical Asset Allocation (TAA) guidance but continue to reflect that disciplined philosophy.

STAAC has updated our TAA to move portfolios to modestly overweight equities and underweight fixed income. Importantly, this adjustment builds on positioning decisions made well before volatilit

In what should be a surprise to no one, energy has been one of the better performing sectors since the joint U.S.-Israel airstrikes on military targets in Iran on February 27, although it has given up some ground since a two-week cease fire was announced last week. The S&P 500 is up slightly during this period (+1.2%) while the energy sector has gained 0.4% (price appreciation, excluding dividends).

What may surprise you is that gain is only good enough for fifth place in the sector rankings since February ended. Technology is on top with a 5.9% gain. Technology beating energy during an oil price spike is surprising enough, b