The Economy That Wants to Hang On

Midyear and quarterly reports are inherently backwards-looking. In 2025, this reality proves particularly frustrating amid volatile markets beset by cloudy economic policy.

Using Clearwater’s proprietary data from ~1,000 corporate clients with a combined ~$1.4T in assets, this report covers a comprehensive view of recent history for corporate investors with a look ahead at the macroeconomic environment for the second half of the year.

Performance | Steady in the storm

• Distribution of corporate returns
• Decomposition of corporate returns
• Cross-client comparisons

Strategy | Duration bets have paid off

• Asset allocations over time
• A tactical shift towards duration
• What a “good” strategy looks like

Macro Outlook | The economy that wants to hang on

• The Fed’s tricky balancing act
• A weakening labor market or a weak labor market?
• The threat of tariffs on consumer spending power

See the trends and impacts in charts and graphs.