This year has been a whirlwind year for investors, marked by shifting geopolitical risks, a mixed economic backdrop and surprisingly strong stock market returns. While improving fundamentals have helped drive the market gains so far, concerns about the outlook for stocks persist amid rising geopolitical risks and high valuations.
For concerned investors, the key question is how best to position portfolios to help mitigate rising risks and potential volatility. Historically, the answer has been incorporating traditional core fixed income—such as U.S. Treasurys and corporate bonds—as part of a well-diversified portfolio.
However, there are also warning signs for investors, most notably the continued rise in debt levels. Earlier this year, U.S. public debt outstanding surpassed $39 trillion for the first time in history and is projected to rise. This has been financed through a substantial Treasury issuance, which has, in turn, contributed to rising long-term Treasury rates throughout the early part of the year.
fa-mag.com
by Sam Millette
June 1, 2026