• Investing is inherently complex. U.S. Treasury yields far below longer-term averages and compressed credit market spreads make fixed income challenging. Equity can generate attractive returns, and considerable volatility. Market Insights is Thornburg’s window into how we think about risk, reward and the myriad factors that drive risk-adjusted returns.

  • Market Insights

    Thorough analyses of trends & changes influencing the markets.
  • “Death by Amazon” a Real, Though Not Indiscriminate Threat
    August 9, 2017 [Market Insights, Clay Cleek]
    When the curators at Merriam-Webster convene to select their Word of the Year for 2017, they might consider “Amazonization” for their short list. Since the June 15th announcement of Amazon’s...
  • Are Low Vol ETFs as Smart as They Sound?
    July 27, 2017 [Market Insights, Josh Rubin]
    How smart are “smart beta” products? As factor-based investing is the latest fashion in the allocation trend to passive exchange traded funds, the performance of the most popular among smart beta...
  • On Chaos, Butterflies, and Robustness
    July 24, 2017 [Market Insights, Danan Kirby]
    In the early 1960s, a meteorologist undertook a mission to predict the weather. Unique to his approach at the time was his extensive use of computers to assist in the predictions. He began running...
  • Misperceiving Risk and Pricing for Perception
    July 7, 2017 [Market Insights, Charles Roth]
    Central banks are usually better at creating asset price bubbles than deflating them before they pop. While it is, of course, far easier to identify bubbles after they burst, the conventional cure for the...
  • Bank Loans Beat High Yield Amid Rising Rates? Don’t Bank on It
    June 29, 2017 [Market Insights, Christian Hoffmann, CFA]
    Bank loan funds have been widely touted as a great way to help fixed income investors ride out a rising interest rate cycle. Also known as levered loan or senior loan funds, they are, after all, high...
  • More Overseas Outperformance May Be In Store
    June 19, 2017 [Market Insights, Charles Roth]
    After years of excellent equity returns at home, U.S. investors appear increasingly interested in moving their chips into less crowded trades abroad, where economic growth is on the upswing, earnings cycle...
  • Yellen at the Markets: Don’t Worry. Low Unemployment to Trump Transitory Low Inflation
    June 15, 2017 [Market Insights, Charles Roth]
    Despite weaker economic data of late, the U.S. Federal Reserve matched market expectations in raising its benchmark interest rate June 14, 2017 a quarter point, setting its new range to a still highly...
  • Trump Down-Trade in Muni Market Draws to a Close
    June 1, 2017 [Market Insights, Charles Roth]
    If the Trump reflation trade is proving slower to unwind among U.S. blue chips stocks, it’s become far more apparent in the municipal bond market, which has broadly retraced its steps since the surprise...
  • Parsing Long/Short Equity Liquid Alts Performance, Fees and Net Exposures
    May 24, 2017 [Market Insights, Charles Roth]
    The sharp focus on investment management fees nowadays has brought private hedge funds under heavy scrutiny, along with their generally poor performance against long-only benchmark indices. So...
  • Goodhart’s Law, Greenwashing and ESG
    May 19, 2017 [Market Insights, Danan Kirby]
    "When a measure becomes a target, it ceases to be a good measure." This insight comes from economist Charles Goodhart, whose precept refers to the tendency of individuals or organizations...
  • House Passes Health Care Reform, But the Senate’s Prescription Likely to Vary
    May 5, 2017 [Market Insights, Charles Roth]
    In this Q&A, Thornburg’s Connor Browne doubts the Senate will pass the House’s American Health Care Act (AHCA) in its current form, and is cautious...
  • The Mirror Image of the Weak Q1 GDP Reading
    May 1, 2017 [Market Insights, Charles Roth]
    It's the Rorschach economy. After much weaker-than-expected U.S. first-quarter gross domestic product (GDP) data, it seems economists' views range from....
  • Trump Trade? The More Likely Reflation Trade is in Europe
    April 28, 2017 [Market Insights, Charles Roth]
    European asset prices have surged since independent Emmanuel Macron emerged as the decisive winner in the first round of the French presidential election...
  • ETFs’ Total Costs Underappreciated
    April 12, 2017 [Market Insights, Charles Roth]
    Morningstar’s director of exchange-traded fund research penned an interesting article April 12 on the total cost of ETF ownership, which we also wrote about in a recent article examining the latest...
  • Managing Risk Exposures Amid Fed Balance Sheet Normalization
    April 7, 2017 [Market Insights, Josh Yafa]
    The U.S. Federal Reserve has released the minutes from its March monetary policy meeting, suggesting that the unwinding of trillions of dollars in debt on its balance sheet could start later this...
  • U.S.’s So-so Hard Economic Data May Weigh on Buoyant Consumer Sentiment
    March 30, 2017 [Market Insights, Clay Cleek]
    Recently, much has been made about the divergence between hard and soft data on economic fundamentals in the U.S. On March 28, the Conference Board reported that its consumer confidence...
  • Patience Is a Virtue (Especially in Municipal Bond Investing)
    March 17, 2017 [Market Insights, Christopher Ryon, CFA]
    In an upwardly rising interest rate environment patience is an extremely important character trait for investors. They need to examine their investment horizons, make sure they are appropriate for their...
  • The Fed’s Regime Change
    March 16, 2017 [Market Insights, Charles Roth]
    The U.S. Federal Reserve shifted gears at its March 15, 2017, monetary policy meeting, lifting its key Federal funds rate a quarter-point to a 0.75-1.00% range. Although the increase was widely flagged...
  • Market Shrugs off Fed Rate Hike Warning
    February 24, 2017 [Market Insights, Charles Roth]
    After leaving its benchmark interest rate near zero for eight years and then lifting it just once in each of the last two, the market has grown accustomed to discounting U.S. Federal Reserve indications...
  • Lost & Found: Fixed Income Purchase Premiums on Maturing Bonds
    February 16, 2017 [Market Insights, Daniel Petrush, CFA]
    One concern all-too-common among many mutual fund investors isn’t well founded: that price premiums on purchased bonds are “lost” when the premium bonds mature at par. They aren’t...
  • Trump Trade to Trump Fade?
    February 3, 2017 [Market Insights, Charles Roth]
    In the wake of Donald Trump’s November electoral victory, investors focused on his pro-growth agenda of tax reform, deregulation and infrastructure spending, not on his protectionist and...
  • What’s Past isn’t Prologue So Far in 2017
    January 24, 2017 [Market Insights, Charles Roth]
    Markets this year have gotten off on the right foot. Over the first three weeks of 2017, the S&P 500 Index added 1.3% to its 12% gain in calendar 2016, while the Bloomberg Barclays U.S. Aggregate...
  • Can Bank Loan Funds Float to a Narrow Outcome?
    January 18, 2017 [Market Insights, Jeff Klingelhofer, CFA]
    Many investors might see bank loans as “fixed income” without duration risk, given their floating-rate structure. They may use them as a way to reduce their exposure to rising risk-free rates without...
  • The Flip Side of the Muni Market Selloff
    January 17, 2017 [Market Insights, John Burnham, CFA]
    Recent municipal bond market movements mark a transition from a period of significant overvaluation to fair or even under-valuation. This can be a painful process for muni market...
  • December Jobs Data and Defensive Fixed Income Positioning amid Lurking Inflation Risks
    January 13, 2017 [Market Insights, Josh Yafa]
    The December U.S. jobs report wasn’t particularly surprising, though a couple of nuances are worth considering for fixed income investors. While the economy added 156,000 jobs, which was a bit...
Important Information
Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit our literature center. Read them carefully before investing.

Investments carry risks, including possible loss of principal. Additional risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small- and mid-capitalization companies may increase the risk of greater price fluctuations. Investments in the Fund are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity.

The performance data quoted represents past performance; it does not guarantee future results.

The performance of any index is not indicative of the performance of any particular investment. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index.

The views expressed are subject to change and do not necessarily reflect the views of Thornburg Investment Management, Inc. This information should not be relied upon as a recommendation or investment advice and is not intended to predict the performance of any investment or market.

Please see our glossary for a definition of terms.

Thornburg mutual funds are distributed by Thornburg Securities Corporation.

Thornburg Investment Management, Inc. mutual funds are sold through investment professionals including investment advisors, brokerage firms, bank trust departments, trust companies and certain other financial intermediaries. Thornburg Securities Corporation (TSC) does not act as broker of record for investors.