The Illinois-based investment firm believes that equity valuations are attractive, especially in growth sectors.

“The spread between the average earnings yield of the companies in the S&P 500 Index and the 10-year US Treasury further supports the case for equities,” the firm said. “While interest rates are likely to remain low for the near term, inflation is still a risk - and one that equities can provide a hedge against.” 

Meanwhile, global secular themes continue to support equities in certain sectors, especially demand for consumer goods in emerging markets, demand for innovative technology and the global build out of infrastructure.

In fixed income, the firm likes mid-grade corporate issues. This is due to the lack of opportunities in the government bond market, and the fact that high-risk credit may not offer enough reward for the level of risk they imply.

“This is an environment that requires patience and long-term, global perspective,” said Calamos. “An understanding of the co-integration of global economies is essential, as is active fundamental research.”