Developed Countries

The Fed is on hold for now, but its 2026 economic projections are far too optimistic. The Fed will ease more next year than it currently anticipates. 

We present our five key views for global fixed income markets in 2026. A year that will see the global easing cycle come to an end.

September’s weak consumer spending data challenge the K-shaped recovery narrative and suggest that spending will slow to match already-weak employment growth.

Our Portfolio Allocation Summary for December 2025.

MacroQuant remains tactically overweight equities, favors an above-benchmark duration stance in fixed-income portfolios, remains bearish on the US dollar, and is bullish on gold.

Our key US fixed income views for 2026.

The odds have risen that we have reached a “Metaverse Moment” – a situation where investors punish AI companies for increasing capex. This warrants greater caution towards AI stocks specifically, and the broader S&P 500 more generally.

The September employment report probably won’t convince enough hawks to vote for a rate cut in December.