“Plenty of questions overhang the market outlook for 2026. A sampling: Will the U.S. consumer keep consuming? (likely); will the Artificial Intelligence (AI) infrastructure boom continue? (expected); will an AI productivity boom materialize? (meh); will the U.S. dollar continue to weaken? (probable, but); will the bull market in gold and metals continue? (yes, in our view); will Chinese consumers come out of hibernation? (doubtful); is the Federal Reserve’s (Fed) independence at stake? (unlikely, but); and will the backup in Japanese government bonds (JGB) trigger a tsunami of repatriated capital? (don’t bank on it). There are multiple macro drivers to discern and discount this year, but as we outlined in the December’s Viewpoint—Year Ahead 2026: The Bull Powers On—we expect this bull market can power on this year, supported by above-average U.S. economic activity, double-digit earnings, and expansionary fiscal and monetary policies, among other variables. Our portfolios continue to emphasize the combination of diversification and thematic growth opportunities.“
Morten W. Langer
