2026 outlook: What’s next for markets and the global economy?

The podcast explores the outlook for markets and the global economy in 2026, considering factors like trade tensions and the rise of AI. It anticipates a constructive outlook for equities, particularly in developed and emerging markets, driven by robust earnings and easing inflation. Key factors include sticky inflation influenced by goods price pressures and weak labor supply due to immigration policies. The relentless expansion of AI is expected to fuel CapEx and earnings, especially in the U.S., with potential risks of commoditization and overcapacity. The discussion also covers rates markets, forecasting divergence in monetary policies across different regions, and examines the forces shaping the FX market, including central bank inactivity and strong growth.