Our outlook underscores a year of transition as slower labor dynamics and persistent inflation challenge global policy-makers. Structural growth themes like AI investment and fiscal stimulus are poised to provide support for above-trend U.S. economic growth. For investors, navigating 2026 will require balancing high valuations with long-term opportunities to capture upside growth — while thoughtfully positioning against policy and labor market risks.
Insights from our Chief Investment Officer
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Key takeaways
- U.S. growth remains resilient despite labor and inflation challenges.
- Fed policy is accommodative with further easing expected in 2026.
- We see investment opportunity across asset classes.
Economic Outlook: Tax, trade and monetary policy
The U.S. economy heads into 2026 exhibiting resilience, benefiting from monetary policy easing by the Federal Reserve, while a weakening labor market, impact of tariffs and inflation remain areas of concern.
Equities Outlook: Positioning for a maturing economic expansion
The 2026 equity outlook favors selectivity, with a strong bias towards U.S. large-cap leaders emphasizing names with earnings strength and visibility. We continue to see market broadening by sector and region.
Fixed Income: Positioning for shifting monetary policy risk shifts
Fed policy will continue to focus on the health of the labor market creating a “bull steepener” scenario.
Alternative Investments: An opportunity for investors
In 2026, we see a considerable opportunity to add low correlated sources of potential returns to portfolios driven by well-researched strategies and experienced managers.
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