U.S. equities faced volatility in early 2026 as AI spending concerns, tariff fears, and sector disruption narratives drove sharp selloffs, with semiconductors outperforming while fintech and health names lagged.

With attractive yields, improving credit fundamentals, and a growing role as a liquid access point to private credit markets, BDCs offer a compelling alternative to traditional fixed income.

Preferred securities offer income potential above bonds and lower volatility than equities. Understanding sector differences helps investors position preferreds within diversified portfolios.

Debasement is back in focus. Here’s what’s driving it, what could reverse it and how we’re positioning portfolios for both scenarios.