Navigating Investing in Today’s Markets with George Bory
George Bory outlines key signals he believes bond investors should focus on, including Federal Reserve actions, inflation trends, and corporate behavior, while emphasizing the potential opportunities in today's high-yield environment.
Transcript
Cameron Pickoski: We're here in Fort Lauderdale this week at our National Sales Summit, where the theme is “Charting the Course.” So, with that in mind, George, we wanted to talk to you about how you're navigating investing in today's markets and, specifically, with so much noise, what important signals are you watching in fixed income markets and how should investors separate what matters from what doesn't?
George Bory: Well, thank you, Cameron. So, bond investors really should focus on three specific factors. Charting the course is no easy task in the best of times, but we have a lot of signals today. First and foremost, watch closely what the Fed (Federal Reserve) is not just doing but what they're signaling. They'll be getting a new leader pretty soon. That may meaningfully change policy. It's hard to predict, but we have to watch that very closely. Number two is on the macro front: bond investors—we worry about inflation. We need to protect capital and protect spending power, and there are some signs that it may start to accelerate and we're watching that very, very closely. And then the third really has to do from within the economy: corporate behavior. How are companies behaving today? We have tremendous profitability across corporate America and even global corporations. But we see a lot of M&A (merger and acquisition) activity. So, event risk is starting to pick up, and we know that the AI (artificial intelligence) build-out is massive. And when we talk about funding things like a $7 trillion infrastructure build-out, bond investors need to think about those things. The good news is today yields are high and there are a lot of opportunities in bonds. We think if you chart that course carefully, you can capture good inflation-beating income and you can optimize your portfolio with some capital gains and really generate some nice, robust total returns that just simply compound through time. So, good opportunities, but we need to be careful.
Key takeaways
- Federal Reserve Signals: George believes investors should closely monitor the Fed's actions and policy signals, especially with upcoming leadership changes that could impact direction.
- Inflation and Capital Protection: Inflation remains a critical concern for bond investors, requiring vigilance to protect capital and spending power.
- Corporate Behavior and Event Risks: Trends like M&A activity, AI infrastructure build-out, and large-scale funding initiatives present both risks and opportunities for bond investors.
Related insights
Henrietta Pacquement highlights Allspring's distinctive dual-objective approach to climate transition investing—seeking to balance climate and financial goals while adapting to evolving risks and opportunities.
At Allspring's Annual Sales Summit, CEO Kate Burke highlights the firm's steadfast commitment to investment, client partnership, and platform excellence as key pillars for delivering positive outcomes in a rapidly evolving market.
Bryant VanCronkhite emphasizes the importance of defining "quality" in investments, highlighting his team's focus on unique assets, strong free cash flow, and financial freedom as key characteristics.
Mike Smith, head of Allspring’s Growth Equity team, emphasizes a strategic shift away from the top-heavy dominance of AI-driven tech stocks by diversifying investments and positioning for the next wave of AI opportunities.
Jon Baranko, Allspring’s CIO, underscores the importance of navigating macro-driven risks like inflation, market bubbles, and technology disruption while leveraging volatility as an opportunity through diversified, theme-based investing.
Ann Miletti highlights the critical role of active management in navigating equity markets, emphasizing the importance of focusing on company fundamentals amid market concentration and macro-driven trends.
Derrick Irwin shares his favorable outlook for emerging markets in 2026, driven by strong economic fundamentals, accelerating earnings growth, and reduced investment risk.
Senior portfolio manager Alison Shimada shares her team's balanced approach to navigating emerging markets, emphasizing the importance of shareholder returns, valuation discipline, and macro risk assessment.
Senior portfolio manager Nick Venditti shares his insights on the 2026 municipal bond market so far, highlighting its promising start and potential to be a smart investment amid market volatility.
John Campbell discusses how Allspring’s Systematic Core Equity team’s multidimensional risk framework can help investors manage inevitable volatility and the evolving impact of AI on markets heading into 2026.