I’ve been sifting through stacks of 2026 investment outlooks — you know, those hyped reports where strategists and money managers lay out their predictions.
Now, let’s be honest: no one has a crystal ball. I don’t read these outlooks because I trust them to perfectly call the future. I read them to understand how the smartest people in the room are thinking, to flag the big risks, spot the trends, and see how they plan to navigate today’s knowns and unknowns.
Three major themes keep jumping off the page:
1. AI is still the biggest game in town, but the strategy is maturing
The initial AI hype has settled, but the underlying optimism hasn’t faded. Everyone seems to agree that AI is poised to deliver a massive boost to corporate profits and capital spending globally.
The real challenge? Figuring out the specific winners.
- My take: There’s definitely more opportunity ahead. Instead of just betting on the biggest names, we need to think about the entire AI ecosystem.
- Where to focus your capital:
- The builders: Keep positions in the bedrock companies: the semiconductor manufacturers and the data center infrastructure providers.
- The users: Target companies that are adopting AI to drive real-world efficiency — think healthcare, finance, and industrial firms that are genuinely cutting costs.
- The power supply: Don’t forget the physical demands. We need to invest in the companies building the necessary power and energy backbone — modernizing grids, critical minerals, and specialized power solutions — to handle the massive, always-growing computing demand.
2. Time to move beyond the simple 60/40 portfolio
This is a recurring message, and frankly, I agree with it. The classic 60% stocks / 40% bonds portfolio, especially one concentrated in huge U.S. tech stocks and government debt, is probably going to be a letdown over the next 3 to 5 years. Valuations are high, and the risks are complex.
- A word of caution: Money managers love telling you the 60/40 is dead because it lets them sell you higher-fee, more complex products. Take that pitch with a grain of salt!
- The smart pivot: Even with the fee caveat, I believe we genuinely need a better toolkit. We can enhance returns and manage risk better with a mix that is more aware of inflation, sensitive to valuations, and diversified across different styles.
- New horizons for returns:
- Go beyond the index: Look for opportunities in Value stocks, and the often-ignored Small- and Mid-Cap stocks.
- Don’t limit yourself: Integrating exposure to Private Markets, Real Assets, and Commodities makes sense. Why leave potential gains only to publicly traded securities?
- The catch: Expanding beyond 60/40 introduces unique risks and potentially higher fees. This isn’t a strategy to execute lightly — it requires careful portfolio construction. But the potential reward is enhanced returns and better management of uncompensated risk.
3. Income is the new alpha
Let’s face it: the next decade is probably going to deliver lower returns than the last one did.
- The goal: To the extent you can generate attractive yield, you absolutely should.
- The strategy: Focus on building a portfolio that can deliver resilient income streams. Seeking out higher-yielding opportunities now will be crucial for smoothing out the bumps and generating solid returns in a potentially lower-growth environment.
Speak with your Signet advisor to explore how these themes can work for you.
IMPORTANT DISCLOSURE
This material is provided for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. All investing involves risk, including loss of principal. Private credit investments are illiquid and suitable only for qualified investors who can bear these risks. Past performance is not indicative of future results.