The Odds Are Changing: Investing in 2026
This is why we continue to see AI as, first and foremost, a cost and margin story. Over time, it should support higher returns on equity for the companies that deploy it well.
For investors, the key is to own the beneficiaries of that transition on both the equity and credit side – businesses with scalable models, durable cash flows, and clear plans for harnessing AI to lift productivity over time.
2026: Strong Growth, Weaker Labor, More Dispersion
So where does that leave the macro regime as we look into 2026?
A few points stand out:
- Growth can remain resilient even as labor softens. Real private domestic final purchases continue to point to an economy growing in the neighborhood of 2% in real terms, boosted by robust investment in…
