2025 was a good year for most fixed income markets but we’re approaching 2026 with caution. All-in yields are still attractive for most markets, but spreads (the additional compensation for owning riskier debt) are low, suggesting investors aren’t getting paid to take on a lot of credit risk right now. Federal Reserve (Fed) policy will be key, though, in determining returns in 2026, but with a new Chair expected at the helm by May, rate volatility could remain elevated. Each year, fixed income investors should reasonably expect coupon-type returns, plus or minus price appreciation based upon changing interest rates. But, with our

Reflecting back on 2025, a day has not gone by without investors debating AI’s impact, promise, or peril. Headlines were dominated by AI related stock news, yet the most enduring growth story was found beneath the surface — the steady and compounding build out of the physical infrastructure needed for AI to flourish. From power grids, high-performance networks, and data centers, the massive demand spike for infrastructure is turning what was once known as an income-focused utility model into a high-demand growth engine. According to McKinsey & Company, data centers globally are projected to need $6.7 trillion in cumulative cap

Much like how U.S. equity markets were driven by top-heavy artificial intelligence (AI) themes, so were many stories and headlines. For evidence of this, look no further than the recently announced 2025 Time’s Person of the Year: Architects of AI. We’ve all been fully versed this year on data centers, capital expenditure (capex), “Mag-7”, semiconductors, and the like. Not to be outdone, tariffs too, emerged as a dominant investment story, from the April Rose Garden announcement to the subsequent pause, and the ongoing impacts. Those themes, without a doubt have been cornerstones of the investment landscape, but they&rs

Key Points:

  • U.S. government funding currently runs out for most agencies on January 30, 2026, so it behooves investors to have a playbook for the next round of shutdowns.

 •  Going behind the scenes of the annual outlook, we explore the various headwinds and tailwinds that will likely shape the economy in 2026.

 •  On balance, the tailwinds should overpower and set the backdrop for above-trend growth next year.

Bad News First

The main headwinds for the economy next year are as follows:

1. Slowing Labor Market
2. Persistent Inflation Pressures
3. Tariffs and