In the third quarter of 2025, alternative investments (“alternatives") on average had solid positive returns but underperformed global equity markets which continued to show strong positive momentum. Investor focus has shifted from tariffs to the Elysium of “AI” (Artificial Intelligence). Economic data offered a mixed picture: solid growth (GDP), a soft job market, sticky to rising inflation. The Federal Reserve (the “Fed”) lowered the Fed Funds rate 25 basis points ("bps") despite inflationary data moving slightly higher. The executive branch continues to call for lower interest rates, a weaker dollar, and lower taxes while dismissing any potential resurgence in inflation. Equity valuation pushed to levels that, by some metrics, were as high as they had ever been. While overall investor sentiment remains strongly “risk-on,” and any dip in risk assets a reason to buy, there are parallels to two periods in the past that we believe should concern investors.

To view the entire article, click here.