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

Use of the terms “bull” and “bear” in financial markets can be traced back to London’s financial district in the late 19th century, used as an analogy for how each animal attacks; the bull thrusts its horns upwards, and a bear swipes its paws downwards. Others believe the terms started in the 16th century when bearskin salesmen would sell skins they had yet to receive from trappers, hoping the price from trappers would drop. We’ll leave that debate to you. On Wall Street today, firms consider a base case, or what they believe will likely occur, and bull and bear cases of factors that could sway markets in e