Joe Davis: In 2026, AI investment is likely to accelerate and continue to transform the global economy.

That sort of investment in businesses and companies has the prospect to have slightly higher than expected economic growth in the United States and some other leading markets.

This should stabilize the labor market and could even lead to somewhat fewer than expected interest rate cuts from the Federal Reserve.

Our outlook for the financial markets is also generally constructive, but with one important nuance.

AI-related stocks, particularly United States, have done astoundingly well over the past several years.

But our study and analysis of financial market history reveals one compelling thesis.

And that is, over time, areas outside of the technology field will start to outperform more strongly as they benefit from the technology itself.

So areas such as value stocks in the United States and investments outside of the United States should increasingly offer attractive returns.

And then finally, areas such as fixed income, which provide not only higher income expected as interest rates should remain above the rate of inflation but also provide just a modest defensive posture should this sort of exuberance continue to the sky.