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On October 4, 2025 Eaton Vance held a webinar on The BEAT featuring strategists discussing opportunities in Bonds, Equities, Alternatives and Taxes. Highlights can be found below.
Note that the replay is eligible for 1 CE Credit for CFPs / IWI / CFAs.
Macro Environment - Jim Caron
- The benefits from deregulation and the One Big Beautiful Bill Act are actually outpacing the headwinds of tariffs. As such, we're seeing net tailwinds in the economy.
- Higher valuations rely on a solid labor supply, one that should keep wages relatively low and stable, where profit margins can then stay relatively high.
Bonds - Andrew Szczurowski
- What about the Fed? In the short term, status quo. If they were going to cut in October--and they don't have enough data to tell them otherwise--they're still going to cut in October.
- The Fed is shrinking its mortgage portfolio, which we believe is a good thing for investors. Wide spreads are going to provide attractive carry, so we like that space. We also like non-government mortgages, as borrowers are often putting down 30% with low loan-to-value ratios.
Equities - Andrew Slimmon
- The current bull market is entering its fourth and final stage. So while we had a 19% drawdown this spring, you tend to see a good year if a bull market makes it to its fourth year, which it has.
- When we analyze companies, we look at those using AI (artificial intelligence) to enhance profitability. In general, these companies are in the United States. The S&P 500 is comprised of 33% in the tech sector, while Europe is at a very low level. So with respect to tech, be careful where you are investing.
Alternatives - Steve Turner
- From an investor sentiment perspective, all asset classes in private markets, with perhaps the exception of venture capital, remain in positive expansion territory.
- Default rates in private credit have increased, but they're still low compared to long-term averages. Private credit continues to benefit from an advantaged level of recovery in the event of defaults, and credit spreads, broadly speaking, are in line with their long-term levels.
Taxes - Brian Smith
- We believe it is important to engage your clients in a conversation about how philanthropy can play an important part in their year-end tax planning. Three conversations to have involve 1) How to give, 2) What to give and 3) When to give.
- The One Big Beautiful Bill Act includes two provisions that were very specific with implications for individuals in the highest tax bracket that are considering philanthropy in the future. We generally recommend to work with a CPA about the new tax law.
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