Rational Exuberance Sets the Tone for 2026

The latest CIO View outlines how a steadier macro backdrop, resilient earnings, and a measured policy shift frame a constructive outlook for 2026 

• Growth is expected to accelerate as inflation moderates and central banks pivot toward easing, with the Fed projected to cut rates three times next year 

• Equities enter 2026 with a solid foundation: earnings momentum, supportive financing conditions, and broad global participation beyond the U.S. AI leaders 

• Bonds benefit from high carry and stable inflation, though long-end supply pressures and tight credit spreads call for selectivity in duration and credit exposure 

For a closer look at regional dynamics, asset-class implications, and key risks shaping the new year, dive into the full outlook.