Let’s Talk Investments
Navigating falling rates, rising markets and mixed signals
U.S. equity markets have been seeing all-time highs while short-term interest rates are entering a falling rate environment. At the same time investors are facing mixed signals from inflation and job markets.
This edition of Let’s Talk Investments focuses on cycles and potential opportunities for staying invested over the long term. Topics include:
- How the markets are viewing recent Fed decisions and the potential pace of rate cuts
- The potential role artificial intelligence could have on the economy and markets
- Impact of the rate environment for fixed income and private credit markets
- The importance of maintaining diversification
Meet the experts:
Katie Koch and The TCW Group are not affiliated with Bank of America Corporation.
The views and opinions expressed are those of the presenters as of September 24, 2025, subject to change without notice, and may differ from views expressed by Bank of America Corporation or its affiliates. This is presented for information purposes only and should not be used or construed as a recommendation of any service, security or sector. Past performance is not a guarantee of future results.
Investing has varying degrees of risk, and there is always the potential of losing money when you invest in securities, and future prospects may not be realized. Asset allocation, diversification, rebalancing and risk management do not ensure a profit or protect against loss in declining markets.
Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration. Investments in Infrastructure Assets will be subject to risks incidental to owning and operating infrastructure projects, including risks associated with the general economic climate, geographic or market concentration, government regulations and fluctuations in interest rates.
Alternative investments are intended for qualified investors only. Alternative Investments such as hedge funds, private credit and private equity funds, and funds of funds can result in higher return potential but also higher loss potential.
Mortgage-backed securities (MBS) are subject to credit risk and the risk that the mortgages will be prepaid, so that portfolio management may be faced with replenishing the portfolio in a possibly disadvantageous interest rate environment. Generally, when interest rates decline, prepayments accelerate beyond the initial pricing assumptions, which could cause the average life and expected maturity of the securities to shorten. Conversely, when interest rates rise, prepayments slow down beyond the initial pricing assumptions and could cause the average life and expected maturity of the securities to extend and the market value to decline.
