Global Investment Outlook 2026

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.

In this 2026 outlook, we believe that, at current valuation levels, several MENA markets offer a more balanced risk-reward profile than in recent years, particularly for investors with a medium-term horizon.

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.

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.

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

Lower oil prices, earnings growth and diverse opportunities in 2026: Templeton Global Investments explores these key themes in its latest Global Equity Pulse.

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.

Artificial-intelligence-related investment is one of the trends likely to sustain the rise of emerging market equities in 2026, as policy support also contributes to a favorable backdrop.

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.

Templeton Global Macro’s Michael Hasenstab believes that despite uncertainty, global growth still looks quite resilient, though that might be tested if the current Middle East conflict becomes significantly protracted or broadens.

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 Head of European Fixed Income David Zahn says he is cautiously optimistic about Europe’s economic outlook.

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.

The Bank of Japan appears to be an outlier, anticipating two interest rate hikes in 2026, while North American and European Central Banks are likely pausing and calling for steady as she goes. Get an overview of central bank actions and the likely trajectory in the months ahead from Franklin Templeton Fixed Income.

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, Franklin Templeton Investment Solutions suggests risk assets should remain supported, despite stretched sentiment and positioning.

In this month’s Allocation Views, Franklin Templeton Investment Solutions suggests risk assets should remain supported, despite stretched sentiment and positioning.

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

Markets continue to offer attractive opportunities for income generation and selective capital appreciation, according to Franklin Income Investors CIO Ed Perks. In this article he discusses his outlook for 2026 and where he sees opportunities and risks.

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, concentration versus diversification could be a major question on the minds of many investors as 2026 kicks off. 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.

Active ETFs have experienced explosive growth, yet most investors don’t understand how they actually work. Jason Xavier, Franklin Templeton ETF Capital Markets Head of EMEA & Asia, demystifies the mechanics behind this popular investment vehicle.

In 2025, the ETF industry continued to grow, and ETFs have become an integral part of portfolio construction, especially in Europe and Asia. Jason Xavier, Franklin Templeton ETF Capital Markets Head of EMEA & Asia, offers three predictions on where the industry could be headed in 2026.

With 2025 almost in the books, David Mann, our Head of Global Exchange-Traded Funds (ETFs) Product and Capital Markets, looks back on his predictions and gives some thoughts on an incredible year for the ETF industry.

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.