U.S. Equities
U.S. Fixed Income
Non-U.S. Equities
Alternatives
Currency
Private Markets
Slightly Positive
Neutral
Slightly Negative
Negative
Positive
U.S. Large-Cap Equities
U.S. Small-Cap Equities
U.S. Treasuries
U.S. Corporate Bonds
European Equities
U.K. Equities
Asia-Pacific Equities
Emerging Market Equities
Real Estate / Infrastructure
U.S. Dollar
Private Equity
Private Credit
U.S. Large-Cap Equities
Expensive valuations are offset by robust fundamentals. Looking ahead, we expect market leadership to broaden, creating opportunities outside the mega-cap names.
U.S. Small-Cap Equities
The cycle should be supportive for small-cap equities, with decent economic growth and further reductions in interest rates.
U.S. Treasuries
Government bond yields are trading close to fair value. If equity volatility rises through 2026, we expect Treasuries to be effective diversifiers.
U.S. Corporate Bonds
Corporate bond valuations look expensive, with credit spreads for both investment grade and high yield bonds remaining very tight.
Private Credit
Senior secured and asset-based lending are preferred given elevated base cash rates. We see compelling opportunities in European direct lending.
Private Equity
We see growing potential opportunities in non-U.S. markets, including Japan, Asia ex-China, and the Middle East. At the sector level, defense and defense technology are key areas of focus.
U.S. Dollar
The dollar continues to look expensive on a valuation basis. Our macro outlook of improving U.S. growth should lead to dollar weakness, given the countercyclical nature of the currency.
Real Estate / Infrastructure
We expect REITs and infrastructure to provide diversification benefits through 2026, with valuations appearing reasonable.
Emerging Market Equities
Valuations continue to look appealing relative to developed markets. We think the region can benefit from further investment in semiconductors.
Asia-Pacific Equities
APAC valuations look attractive, and earnings growth is expected to be robust. Corporate governance improvements in Korea and China are a positive, while ongoing weakness in China’s economy remains a key risk.
U.K. Equities
The economic environment in the United Kingdom remains very challenging, but equity valuations appear to have priced in much of the bad news.
European Equities
Fiscal stimulus through 2026 and improving fundamentals for European corporates support the outlook for European stocks.
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
NEUTRAL
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
NEUTRAL
NEUTRAL
SLIGHTLY POSITIVE
NEUTRAL
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
SLIGHTLY POSITIVE