News & Insights

Persistent inflation erodes purchasing power and complicates monetary policy. Bailard explores energy costs, AI demand, and the risks for investors.

Explore the living library of Bailard's Sustainable, Responsible & Impact Investing (SRII) publications.

U.S. long-dated yields reached their highest in over 20 years. A bond sell-off deepened on stronger-than-expected growth, elevated inflation, and rising spending, with the Treasury’s buyback efforts failing to calm markets. Germany’s Bund yield hit a 17-year high, and Japan’s 10-year JGB hit a 30-year high. The Fed hiked rates for the first time in three years; the BoJ, ECB, and RBA also raised rates.

With the last of the off-cycle reporters now largely wrapped up, we can effectively close the book on the second quarter earnings season.

Rising global bond yields are sending a warning as inflation, fiscal deficits, and monetary policy expectations pressure markets.

US long bond yields hit near 20-year peaks on debt concerns, with the national debt topping $40 trillion. The Treasury doubled buybacks of long-dated bonds to provide stabilization. Japanese, German, and French bond yields also hit multi-decade highs.

An explanation of why the turnaround narrative is so sticky, what the simulations reveal, and what a more durable small cap value alternative looks like.

July retail sales disappointed investors, but calendar shifts, auto sales comparisons, and other one-time factors suggest consumer demand remains relatively stable.

Bailard names Simon Smundak, CFA, as Senior Vice President, Private Markets & Solutions, deepening its UHNW advisory bench.

Q2 saw a sharp risk-on rally as easing Middle East tensions and renewed AI-buildout conviction reversed Q1's energy shock, with non-U.S. markets—especially hardware- and semiconductor-heavy economies—leading the rebound. Given the speed of thd reversal and July's renewed volatility for both geopolitics and AI sentiment, we continue to favor staying diversified rather than tied to one theme, country, or style, while still expecting non-U.S. equities to lead over a multi-year horizon due to broad participation, attractive valuations, and structural tailwinds.

Bailard earns its sixth consecutive appearance on the San Francisco Business Times' list of Top Bay Area Corporate Philanthropists.

Middle East tensions escalated as the US-Iran truce collapsed: the U.S. reinstated a naval blockade of Iranian ports and ordered fresh strikes, while Houthis hit Saudi-linked tankers in the Red Sea. Brent surged past $100/barrel before retreating.

A risk-on rally in April–May, fueled by economic resilience and easing Iran-conflict fears, pushed junk and meme stocks higher and made the Russell 2000 Value Index tough to beat, but June's shift to risk-off—spurred by AI funding skepticism—favored quality and value characteristics that benefit active managers. The Bailard Small Cap Value Strategy generated a 2Q26 total return of 17.57% net of fees, compared with the Russell 2000 Value Index at 17.19%

Brent crude topped $100 a barrel and the Fed held rates steady, but a hawkish dissent signals mounting pressure for a rate hike as soon as September.

Q2 2026 delivered the strongest quarterly return in more than five years, driven by continued enthusiasm around AI. However, AI is not a single investment theme; it is a stack. At its foundation are semiconductors, networking equipment, servers, and other hardware that power AI data centers.

AI investment is reshaping construction, energy, and supply chains. Dave Smith examines the opportunity, rapid growth, and risks beyond tech.