Global Investment Outlook 2026

In this update, we share how we navigated concentrated market leadership, managed key positions in Energy and Materials, and stayed focused on what's always guided our approach: valuation discipline, free cash flow quality, and risk mitigation. It's a quarter that reinforced why selectivity matters as much as direction.

In this month’s Global Equity Pulse, Templeton Global Investments makes the case for a recovery in the health care sector.

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.

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.

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

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?

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.

ClearBridge Investments: Renewables form a relatively high percentage of power both being built today and planned for the immediate future. Biodiversity, AI, defense and nuclear are also key issues for 2026.

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.

ClearBridge Investments: Shifting geopolitics are causing policymakers in Europe and Japan to step up fiscal spending to gain self-sufficiency and generate growth.

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.

Templeton Global Investments suggests the outlook for Chinese equities in 2026 is bright and are positive on the semiconductor, consumer discretionary, power equipment and biotech sectors.

India is poised for earnings recovery in 2026, as supportive fiscal and monetary policies continue to underpin the resilience of domestic consumption.

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.

ClearBridge Investments: Shifting geopolitics are causing policymakers in Europe and Japan to step up fiscal spending to gain self-sufficiency and generate growth.

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.

Recognising growth trends as they reach an inflection point is one of the hallmarks of successful investing. One such trend is the profound transformation of the Indian consumer landscape.

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.

Global central banks are entering a more complicated phase, according to Franklin Templeton Fixed Income, where patience increasingly comes with conditions. Policymakers are balancing sticky inflation risks, uneven growth and region-specific pressures.

In this latest perspective from Templeton Global Macro, global markets remained resilient in June despite ongoing geopolitical and inflation risks, with emerging markets continuing to outperform developed economies.

Global markets face a more stagflationary backdrop as inflation pressures intensify, growth diverges and central banks stay on alert. Tech and artificial intelligence investment continue to support the United States, Europe wrestles with a fresh inflation shock, and Japan shows resilience. But rising costs, supply strains and policy uncertainty cloud the outlook.

In this second quarter update, Western Asset believes global fixed-income markets face a more complex backdrop as geopolitics, rapid AI adoption and private credit scrutiny intersect.

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.

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.

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.”

In this month’s Allocation Views, Franklin Templeton Investment Solutions improve their view on equities, driven by strong earnings, resilient growth, and improving energy market conditions despite inflation risks.

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

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, Franklin Templeton Investment Solutions believes hedge funds remain well positioned to deliver diversification and alpha in the third quarter, favoring security selection over broad market exposure.

Clarion Partners: The convergence of long-term structural drivers and emerging cyclical tailwinds suggests the industrial sector may be approaching an inflection point, with conditions increasingly supportive of new development.

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.

At the start of this year, many investors questioned whether equity markets had become too reliant on a handful of AI winners. Dina Ting and Marcus Weyerer take a more nuanced view into how broadly this theme’s benefits may spread.

After years of US mega-cap dominance, global equity markets are changing course. Correlations have fallen, monetary policies are diverging, and regional drivers are reshaping returns. This analysis explores what’s behind these shifts, the opportunities we believe are likely to emerge, and why we believe global diversification deserves a fresh look in 2026.