Market update and key investment themes for 2026

As markets enter 2026, investors are seeking clarity on how to navigate shifting risks and opportunities. Matt and Emily join the podcast to provide a wide-ranging market update amid the ongoing volatility and geopolitical uncertainty.
They share their perspectives on what investors should watch for in today’s environment, including the impact of global events on inflation, the importance of focusing on quality investments, and where they see opportunities in fixed income and international markets.

1 What should investors watch out for in today’s volatile and uncertain geopolitical environment?
Emily: From a geopolitical disruption standpoint, we're watching commodity prices closely, especially oil prices. If any event disrupts oil supply and drives prices higher, it could push inflation up. While we’re not seeing this right now, such a scenario would impact the U.S. Federal Reserve. It could challenge the expectations of one or two rate cuts that are currently priced into the market.

2 What are the key themes that investors should watch out for in 2026?
Emily: Our mantra for 2026 is finding quality at a reasonable price. In 2025, lower-quality opportunities gained traction, and we’re looking to trim exposure to those areas. We expect companies that can maintain margins to perform well this year. Earnings growth could broaden beyond technology stocks, with mid-cap companies offering new opportunities. We’re also focused on right-sizing international positions based on any macro developments related to the U.S. dollar.
Matt: Inflation, in our view, is moderating more than the market is pricing in. Despite this disinflation, bond yields remain elevated, offering attractive real income for investors. As a result, our conviction in bonds has grown, and we see current yields as a compelling opportunity for income as we head into 2026.