Investment Focus

Today’s market environment calls for broader thinking about fixed income allocations. Yields have risen from ultra-low levels, but how you compose your fixed income exposure matters; not all sources of yield are created equal. Careful stewardship and flexibility remain critical amid economic uncertainty. The Dodge & Cox Global Bond Fund is a flexible and opportunistic strategy that can fit different needs in your asset allocation framework.

We see a silver lining in the cloud that has hung over the bond market over the past year: the cumulative interest rate increases that drove record annual losses have simultaneously returned the asset class to greater relevance going forward. Additionally, the elevated uncertainty and volatility in the current environment create the potential for active managers employing deep research to generate outperformance.  

In recent months, surging inflation, rising interest rates, and geopolitical issues have roiled the capital markets. Recently, members of our Macro and Client Service teams discussed some of these issues and the role macro analysis plays as an input in our evaluation of equity and fixed income securities’ fundamentals.