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We’ve entered 2026 after a third consecutive year of strong stock market gains, generally declining central bank rates, falling bond yields and a turbulent macroeconomic environment. The U.S. and global economy have shown remarkable resilience in the face of geopolitical tensions and trade wars, with the Bloomberg consensus world real year-over-year GDP forecast to be 2.0% for both 2025 and 2026. Equity markets have responded positively in this environment and as we head into the new year are vacillating between artificial intelligence-driven enthusiasm and concerns over valuations, which are stretched particularly in U.S. large-cap stocks where the indices are driven by the tech mega-cap names. If you would like to learn more, please watch a short video message prepared by members of our Investment Strategy team.