Global Investment Outlook 2026

In this month’s Global Equity Pulse, Templeton Global Investments examines undervalued opportunities as a wave of rearmament progresses at a rapid pace.

With oil prices and energy stocks at higher level, how can investors navigate a sector driven by geopolitics and volatility? This month’s Global Equity Pulse reveals why looking beyond commodity prices to company fundamentals may be the key to unlocking value in today's uncertain energy landscape.

Royce Investment Partners: Co-CIO Francis Gannon discusses how US small caps remain market leaders even as volatility and uncertainty are on the rise.

On this month’s Talking Markets podcast, our host, John Przygocki, sits down with ClearBridge Investments’ Jeff Schulze to assess the US economic outlook, evolving recession risks, and the market implications of escalating geopolitical tensions. The conversation spans inflation dynamics, the potential impact of oil price increases and Fed policy expectations, while also exploring AI disruption and providing an update on US equity markets.

Templeton Global Investments is increasing its focus on opportunities in the consumer staples sector, where compelling valuations, attractive dividends and potential earnings recovery beckon.

International value stocks outpaced US equities in 2025. See the five catalysts fueling the shift—and why investors still have time to act.

Franklin Equity believes biotechnology supports a highly selective, active approach, focused on identifying companies best positioned to translate innovation into durable value.

Royce Investment Partners: Co-CIO Francis Gannon looks at how low interest rates, tax policy, reshoring, technology adoption, and deregulation can fuel US small-cap earnings growth.

Japan is undertaking its most significant economic and corporate transformation in a generation. The likely earnings tailwind from economic normalization combined with shareholder return enhancement through corporate reforms anchor our bright outlook for 2026 and beyond.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments reviews the latest Recession Risk Dashboard, including an update to Manufacturing PMI, New Orders. He also shares his thoughts on rotation in the US equity space, consumer strength, and why markets may see some volatility in 2026.

Royce Investment Partners: Chris Clark and Francis Gannon discuss whether relatively attractive valuations, strong earnings, and heightened volatility could put US small-caps back on top in 2026?

Templeton Global Investments maintains its conviction on Japanese equities in 2026, as evidence of economic normalization and broadening corporate reforms continues to build.

China’s Spring Festival, Korean semiconductors and emerging market earnings are the three things Templeton Global Investments analyses in this month’s Emerging Markets Insights.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments shares insights from the ClearBridge Recession Risk Dashboard, explores the outlook for US equities in 2026, and discusses how AI-driven capital expenditures compare to past innovation cycles. Get his perspective on economic trends and where opportunities may lie in the year ahead.

Royce Investment Partners: Portfolio Managers Lauren Romeo and Jim Harvey join CEO and Co-CIO Chris Clark and Co-CIO Francis Gannon to discuss why they’re constructive on US small-cap’s prospects in 2026 and how they’re positioning their portfolios.

The probability of strong earnings and growth-friendly policies should make emerging markets attractive to investors in 2026, in the view of Templeton Global Investments.

Miles Lewis, Chip Skinner, Kavitha Venkatraman, Steven McBoyle and Francis Gannon talk about what they see in store for US small-cap stocks in the coming year.

Several factors point toward potential global growth acceleration in 2026. However, employment weakness poses a meaningful risk. Our experts share what this sideways outlook may mean for the economy, financial markets, and cross-country divergences.

Franklin Equity Group suggests markets seem to be transitioning from a narrow, liquidity-driven regime to one shaped by fundamentals, innovation, and active management.

Franklin Equity Group’s Grant Bowers suggests the US economy may be approaching a Goldilocks equilibrium in 2026, supported by stable growth, anchored inflation and policy tailwinds.

Franklin Equity Group’s Matt Cioppa suggests we’re in the midst of a multi-year AI super-cycle, and this will keep us optimistic on the technology sector in 2026.

ClearBridge Investments expects a broadening of market participation that should benefit more diversified portfolios in 2026.

2025 is ending with a range of worries for the stock market—which is no surprise, observes Putnam Equity’s Shep Perkins. But it’s important to also recognize what could go right for the market in 2026.

Innovation will reshape the global economy in 2026, according to Franklin Equity Group’s Jonathan Curtis. In this paper, he suggests AI, automation and digital infrastructure have moved beyond the tech sector to become engines of value creation across every industry.

Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, discusses key spending, employment and other policy factors he is following as we look forward to 2026.

Western Asset: A quarterly report providing an in-depth analysis of the global economic landscape, key drivers and insights into fixed-income markets for investors.

In this month’s issue, Templeton Global Macro notes that the Middle East conflict has initially driven risk-off market moves, pushing oil prices, the US dollar and global yields higher.

Amid heightened geopolitical and energy-driven inflation risks, central banks in North America are expected to stay on hold while those in Europe and Asia are poised to react if pressures persist, according to Franklin Templeton Fixed Income.

Growth is holding up across major economies, according to the Franklin Templeton Fixed Income team, but geopolitics and energy prices are raising inflation risks. Policy remains the key swing factor, with central banks potentially diverging. Find out more in the latest FTFI Macro Views.

On this month’s Talking Markets podcast, we sit down with guests Rick Polsinello from the Franklin Templeton Institute and Ben Barber of Franklin Templeton Fixed Income to discuss the US economy and the municipal bond market in 2026. They cover why they view the economy as resilient, some key investment themes for the year, and the growing opportunity within municipal bonds.

Looking ahead to the first quarter of 2026, Templeton Global Macro CIO Michael Hasenstab believes there are several sources of potential economic policy concern in major economies. Find out more.

Western Asset: A quarterly report providing an in-depth analysis of the global economic landscape, key drivers and insights into fixed-income markets for investors.

In this quarterly update, Western Asset believes fixed-income markets should benefit from improving growth in 2026, with subdued inflation and reduced uncertainty around tariffs.

Looking ahead to 2026, Franklin Templeton Fixed Income Municipal Bond Director Ben Barber says there are a few key factors that will likely shape the municipal bond market.

Western Asset: Emerging markets appear well positioned to present selective opportunities in 2026, as strong fundamentals, attractive valuations and evolving geopolitical risks shape investment prospects across currencies, sovereign debt and corporate assets.

Looking ahead to 2026, hear from Franklin Templeton Fixed Income CIO Sonal Desai, and several portfolio managers as they share their market expectations.

Several factors point toward potential global growth acceleration in 2026. However, employment weakness poses a meaningful risk. Our experts share what this sideways outlook may mean for the economy, financial markets, and cross-country divergences.

Emerging markets defied expectations in 2025 amid a surprisingly favorable global environment and several historically troubled economies enacting significant structural reforms. Our Franklin Templeton Fixed Income team share their 2026 outlook for emerging market debt and assess whether these positive trends will continue.

Looking ahead to 2026, Franklin Templeton Fixed Income CIO Sonal Desai says that macro is back in the driver’s seat for financial markets’ performance and investment strategies.

The Franklin Templeton Fixed Income team believes the US economy is expected to remain resilient in 2026, while the euro area faces cautious optimism. Japan’s growth is underpinned by fiscal expansion and robust private demand. Find out more in the latest “Macro Views.”

Franklin Templeton Institute’s latest Winds of Change paper reveals how profound shifts in monetary and fiscal policy are reshaping fixed income markets, uncovering opportunities and demanding a more diversified strategy.

In this month’s Allocation Views, the Middle East conflict and its impact on the global economy in 2026 continue to be the chief concern for asset allocation, as inflationary pressures challenge central bank policy.

A modest allocation to private assets—implemented within a well-designed target-date framework—can potentially improve portfolio efficiency and help retirement savers achieve better outcomes.

Emerging markets leapt forward with equity gains in 2025, and Franklin Templeton Investment Solutions thinks positive trends support momentum in 2026.

The Franklin Templeton Investment Solutions team’s capital market expectations is designed to provide annualized return expectations over a longer-term horizon, typically viewed as 10 years.

As the Fed resumes cutting interest rates, Ed Perks, CIO of Franklin Income Investors, provides an update on the current investment landscape. He also shares his insights and outlook on the fixed income and equity markets, with a particular emphasis on diversifying for income.

In this quarter’s outlook, uneven macro signals and growing divergence between surface-level calm and underlying market fragility define the 2026 investment backdrop. Find out what this means for hedge fund strategies from Franklin Templeton Investment Solutions.

Geopolitical risks remain elevated as the markets continue to digest the impact of trade tariffs. What does this mean for private markets? Franklin Templeton Institute shares its outlook.

Clarion Parters believes overseas investors remain keen on European logistics and expect global interest to build further in 2026.