WEBVTT

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Like all investors,

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we see headlines almost daily
that worry about corporate earnings growth

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and the uncertainties around trade,
immigration and other policy issues.

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But we also recognize positive,
durable trends like lower borrowing costs,

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deregulation, technology spending,
along with significant new tax cuts,

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all of which should promote household
spending, business expansion,

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and strengthen profits.

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And we believe these trends will create
investment opportunities in 2026

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and likely beyond. Our 2026 Outlook:

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Trendlines over headlines

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aims to help investors
separate the signal from the noise

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and offers our highest conviction ideas
on how to best position portfolios.

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In equities, positive policy
and economic trends should help accelerate

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earnings growth and broaden equity market
participation by year end 2026.

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We expect the best opportunities in U.S.

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large and mid-cap stocks,

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and we favor the Financials, Industrials
and Utilities sectors.

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These sectors should find support from
moderating inflation, stronger economic

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and earnings growth, and especially
spending on technology enhancements.

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In fixed income,

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our outlook favors high-quality,
investment-grade corporate bonds

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with maturities ranging from 3 to 7 years.

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We also favor investment-
grade municipal securities

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in both the general obligation
and revenue sectors.

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Additionally, we view credit quality,
diversification, and active management

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as crucial
to managing a fixed-income portfolio.

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In real assets, we favor precious metals
as near-term policy uncertainties persist

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as well as industrial metals
due to solid global demand

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tied to ongoing tech investment.

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Finally, in alternative investments,
we prefer hedge funds and private

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capital strategies with the goal of adding
resilience and reducing portfolio

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volatility, especially in periods
of elevated market turbulence.

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For more specific asset class guidance
and our top five portfolio ideas,

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read our special report 2026
Outlook: Trendlines over headlines.