Our outlook for resilient markets and synchronized global economic growth in the year ahead
After a year defined by policy uncertainty and narrow tech leadership, 2026 begins with the prospect of widening profitability—both within the U.S. and beyond. Global economic growth, solid corporate earnings and improving policy support are aligning for the first time in years.
We believe these underlying drivers of investment performance are well positioned to extend the market advance into 2026. Three key themes to consider as we enter the New Year:
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Growth is broadening across markets. Earnings participation has begun to expand in earnest—across sectors and regions—as synchronized global economic growth takes hold.
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Policy clarity is set to support the expansion. Fiscal, trade and monetary policies are converging to offer a more supportive backdrop, leaving behind a transitional period during which they served as a source of considerable uncertainty.
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Diversification is regaining its relevance. With concentrated U.S. market leadership and elevated valuations across asset classes, we expect opportunistic investment strategies to offer differentiated sources of return in many types of market environments.
As 2026 begins, we see a maturing yet steady expansion. We believe investors will face fewer extremes as policy volatility recedes and a broader cross-section of stocks contributes to earnings growth. As always, we expect patience and selectivity to be rewarded as we enter the next phase of the market cycle.
"Greater participation would generally be positive for investors even if that means tech and AI leaders cede some of their earnings dominance to the rest of the market."
Chief Investment Officer & Head of Investments
ECONOMY & MARKETS
Profitability expands as policy uncertainty fades
We explore how healthy earnings, clearer policy direction and broadening market participation will set the tone for 2026.
EQUITIES
Beyond AI: Policy clarity, consumer challenges and broader participation in 2026
We outline why the dominance of AI-driven mega-caps will contend with elevated stock prices, widening profitability, consumer trends and policy shifts as equity leadership evolves in the year ahead.
FIXED INCOME
A move toward neutral rate policy sets the tone
We address how the Federal Reserve’s rate cuts, our outlook for long-term yields and solid credit fundamentals create a constructive backdrop for bonds.
2026 Investment Outlook webinar
Positioning for global synchronization
Alternative paths to portfolio construction in 2026
Sustainable investing will continue to align profits with purpose in 2026
