Above and below the radar: five themes for 2026
Investing requires radar-like capabilities. As investors, we continually track economic, market and issuer fundamentals to identify compelling opportunities and salient risks. This can be challenging, especially in today’s environment. Solid but slowing global economic growth, combined with persistent inflation, is muddling the monetary policy outlook. Geopolitical and trade tensions, as well as lingering impacts from missing or delayed data during the U.S. government shutdown, are also jamming the transmission of investment signals.
That said, two primary pulses are detectable: high equity valuations and tight credit spreads. Still-elevated levels of cash on the sidelines can’t be ignored, either. The real value of that cash, however, is being eroded by a gradual drop in short-term interest rates and the presence of stubborn inflation. So where might investors want to put cash to work?
We invite you to learn more about our “Five themes for 2026,” with a more detailed readout of our preferences for:
- Diversified U.S. asset class exposure;
- Alternative credit and private equity investments as core allocations;
- Municipal bonds, one of our long-favored asset classes;
- Real estate, which is on the rebound; and
- Second derivative” opportunities extrapolated from booming AI and energy demand.
