History Guides the Present

At Calamos Wealth Management, our investment approach is informed by rigorous, independent thinking — including the perspectives of our affiliated investment management firm, Calamos Investments. As markets navigate a turbulent first quarter, we wanted to share the latest quarterly outlook from the Calamos Investments team, led by Founder, Chairman and Global CIO John P. Calamos, Sr. See below for his full commentary.

April 1, 2026

Introduction by John P. Calamos, Sr., Founder, Chairman and Global Chief Investment Officer

Markets hate uncertainty, and there was no shortage of it during the first quarter. Geopolitics took center stage as Operation Epic Fury led to the closure of the Strait of Hormuz, spiking commodity prices and renewed inflation fears. Anxiety about AI’s impact on the labor market and corporate earnings also roiled stocks. After three years of strong performance, large-cap tech companies bore the brunt of negative sentiment and gave back some gains. An extended US government shutdown, falling consumer confidence, and fading expectations for Fed cuts added to the turmoil.

Global asset class performance, 1Q 2026

Past performance is no guarantee of future results. Source: Morningstar. Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.

5 Takeaways: Lessons from the 1970s to Today

I founded Calamos Investments in the 1970s, a period also characterized by stock market volatility, inflation concerns, and Middle East turmoil. Both stocks and bonds were struggling, but I saw opportunities in convertible securities, which were essentially alternative investments at the time. The results I achieved with convertibles shaped my investment philosophy and the growth trajectory of Calamos Investments, seen today in our emphasis on risk management and a well-diversified set of investment strategies, including a range of alternative funds. Here are five takeaways that I believe can help investors navigate this environment:

1. The global economy is resilient. It’s true we’ve never faced the exact set of challenges we are facing today, but as I noted, it’s also true that the global economy has weathered many periods of geopolitical turmoil (e.g., the 1990–1991 Gulf War), inflation and commodity spikes, and the impact of disruptive technologies on labor markets. History has shown that adaptability and innovation have won the day.

   Also, as the saying goes, bad news sells papers. It’s easy to lose sight of the many positives that can support economic growth and investment opportunities. Corporate earnings growth, the direction of many US economic indicators—including the most recent jobs report—and global growth themes support an outlook that is more balanced. We’re seeing many favorable trends in global capital markets, from a ramp-up in merger and acquisition activity to $53 billion in global new convertible issuance during the first quarter alone.

2. Don’t try to time the market. We’re in a very volatile period, which I expect will continue, especially as midterm elections heighten fiscal policy uncertainty. When markets are swinging dramatically from day to day, or sometimes within a day, making quick emotion-driven moves is a dangerous strategy. You’re more likely to catch the downside and miss the upside. Consider that the S&P 500 gained back nearly 3% on the last day of the quarter alone. A better strategy is to adjust your asset allocation strategically to match your risk-reward tolerance.

3. Risk cannot be avoided, but it can be managed. This was a lesson I first learned during my service in the US Air Force, which included a tour during the Vietnam War as a Forward Air Controller. For investors, managing risk means staying disciplined and cool-headed in the face of volatility.

   It also means diversifying your asset allocation, which could include adding strategies designed to provide lower-volatility equity exposure—for example, actively managed convertible funds or alternatives, from hedged equity to structured protection. You can also layer in strategies that pursue income with less interest rate risk; our Market Neutral Income Fund and our autocallable income ETFs are designed to do just that.

4. There are opportunities in every market environment. Decades of experience have taught me that there’s never a “perfect” time to invest. There are always unknowns and volatility. But more importantly, I believe there are always opportunities for long-term investors.

   I see many people tunnel in on what the S&P 500 Index or another benchmark is doing—but that’s not the whole picture. Although the retreat in tech stocks has dominated headlines, more sectors are positive year-to-date—and this breadth points to a leadership rotation, not economic recession. Market rotation is opening the door to opportunities across sectors, asset classes, market caps and geographies—from small-cap stocks to international equities to convertible securities. Our teams are investing alongside many exciting growth themes—from AI infrastructure buildout (including niches in robotics and optical networking) to health care innovation.

5. Context matters. There have been a lot of scary numbers in the headlines lately—inflation, market declines, oil prices. We’re monitoring these closely but starting points matter. It’s true that the S&P 500 Index ended down more than 4% for the first quarter, but we remember that it was up 86% from 2023 through 2025—that quarterly decline is a relatively minor dip (or “tame” as Co-CIO Eli Pars notes).*

When the markets swing dramatically day to day and the headlines are loud, it’s understandable that many investors are worried and unsure of what to do next. Below, senior investment team members speak to the value of staying invested and maintaining long-term perspective. Their commentaries explain how they are approaching the crosscurrents with a steady hand, the opportunities they are finding and how they are managing risks. They bring a depth of experience to the Calamos funds, and I’m confident you’ll come away with valuable insights and conviction that volatility creates long-term opportunities for investors.

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