Oaktree believes we’re entering a new era of dispersion in the performance of financial assets. Behind buoyant index averages are sharply bifurcated cohorts of winners and losers. Equities are flying high but remain mostly propelled by a handful of AI superstars. Credit appears healthy in aggregate, but there’s a notable tail of unloved names. Economic growth looks robust but masks clear divergence in the experience of high- and low-income consumers, a phenomenon now termed the “k-shaped economy.” These dynamics serve as a reminder that averages shouldn’t be relied upon in a sophisticated investment process.

Views and opinions expressed are subject to change. This content is provided for educational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any product or service of Brookfield Corporation (“Brookfield”) and certain of its affiliates.

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