Navigating Interest Rates and Market Dynamics

This chapter examines the effects of rising interest rates and inflation on equity and fixed income markets, focusing on the performance of small-cap stocks. It discusses historical trends, U.S. exceptionalism, and the cyclical nature of investments, emphasizing strategies favoring value over growth. Additionally, the chapter highlights macroeconomic concerns, tariff implications, and the importance of maintaining quality in fixed income while taking a selective approach to credit risk.