After decades of economic and market stagnation, Japan may be on the path of a sustainable rebound. Vanguard experts weigh in on what that may mean for monetary policy, the yen, and investors’ influence in Japan’s capital markets.

Our research shows that changes in interest rates may alter the risk profiles of bond funds. Now might be the time for a checkup.

La reciente y rápida disminución de la oferta monetaria pone de relieve las preocupaciones deflacionarias en China. El deflactor del PIB, una medida amplia de la producción económica ajustada a la inflación, ha sido negativo durante cinco trimestres consecutivos. A juzgar por las recientes experiencias en Estados Unidos y Japón, China enfrentará dificultades en sus esfuerzos por elevar la inflación al consumidor, apenas positiva, para acercarla al objetivo del 3% del Banco Popular de China.

The Federal Reserve’s target for short-term interest rates essentially sets the minimum level of borrowing costs in the United States. On September 18, the Fed reduced its interest rate target for the first time in more than four years. The 0.5 percentage point reduction made the Fed’s new target a range of 4.75–5.00%.

How should an investor allocate across active and passive investments? It is a challenging decision that involves many considerations. In the absence of a structured decision-making process, investors are left making arbitrary choices based on implicit assumptions.

From the Bible to Aesop’s Fables to modern portfolio theory (MPT), the concept of diversification—not putting all your eggs in one basket—as a means of reducing risk has been around for more than 3,000 years. But investors and the financial advice industry often focus solely on diversification across asset classes within a portfolio. They should broaden their perspective to include wealth management strategies—specifically, to reduce their exposure to the uncertainty of future taxes and planning horizons.

Read Vanguard's 2024 outlook on the private equity market, including our latest forecasts and perspectives.

Investments in AI are unlikely to ward off a near-term U.S. economic slowdown or justify rich stock valuations.

Each month we bring you the latest insights from our Portfolio Solutions experts to help you address evolving issues that may affect your clients’ portfolios.