2026 Investment Outlook: Pushing Limits

As we look ahead to 2026, the global economy is undergoing a massive transformation. We’ve been diving deep into the latest research from our partners at the BlackRock Investment Institute to understand the major forces shaping the markets. Their latest report, “Pushing Limits,” highlights significant shifts that challenge the traditional "set it and forget it" approach to financial planning.

For the families and entrepreneurs we serve - those who don't buy into the traditional "work until you're 65" concept -these shifts are critical. They validate why we believe you need a dynamic, life-centered plan, not just a generic portfolio.

Here are the three key themes we are watching for 2026 and what they mean for your journey to financial freedom.

1. The "AI Revolution" is Just Getting Started (Micro is Macro)

You’ve likely heard the buzz about Artificial Intelligence, but the data suggests this isn't just hype—it’s a historic infrastructure buildout.

Capital spending for AI (building data centers, power grids, software) is becoming so massive that individual company decisions are now driving the entire macro economy. As the chart below shows, the scale of this investment could rival or exceed past technological revolutions like electricity or the internet.

Our Take: We remain "pro-risk" and are leaning into U.S. innovation. The companies building this future are generating real earnings and have strong balance sheets. While headlines might get scary, the long-term growth engine is roaring. We want to ensure our clients' portfolios are positioned to capture that value, helping to fund the optionality they want in their lives.

2. The Rules of Diversification Have Changed

For decades, the standard advice was simple: buy a broad basket of stocks and bonds, and they will balance each other out. This concept is facing a challenge BlackRock calls the "Diversification Mirage."

In this new economic regime, asset classes are moving in sync more often. The old "safety nets" of the market aren't working the way they used to.

Our Take: This reinforces why we don’t just set a generic portfolio and forget it. We believe in being deliberate about where we take risks - looking beyond just traditional indexes to find unique sources of return, such as diversifying market-neutral hedge fund strategies and return-enhancing strategies like private credit.

It also validates why we focus so heavily on your personal economy. Your savings rate, your spending plan, and your career capital are often the best diversifiers you have.

3. Debt and "Leveraging Up"

We are entering a period where companies (and governments) are borrowing more to fund this massive tech buildout. While this fuels growth, it creates a more "levered" financial system that can be vulnerable to shocks if interest rates spike or inflation sticks around.

Our Take: Volatility is the price of admission for the returns we need to build long-term wealth. Our job as your financial partner is to ensure your short-term cash needs (your "sleep at night" money) are safe so that your long-term investments can ride out these waves without you needing to sell at the wrong time.

4. Geopolitical Fragmentation: A "Polyfurcated" World

We are entering the third distinct world order since World War II, marked by deepening geopolitical fragmentation. The recent news of the Trump administration's desire to acquire Greenland and targeted actions in Venezuela and the subsequent leadership change are a stark manifestation of this new reality.

While headlines like these can be unsettling, it is crucial to separate political drama from market fundamentals. Despite Venezuela holding the world's largest oil reserves, it currently produces only about 1% of the world's oil, limiting the transmission of this shock to global markets.

Our Take: We expect a world with a wider range of political outcomes, but we don't believe in reacting to every news alert. The market often looks past binary geopolitical events - like the situation in Venezuela - faster than the news cycle does. Our strategy is to maintain a "Plan B" through scenario planning, ensuring your portfolio is robust enough to handle geopolitical friction without requiring you to change your long-term goals.

The Bottom Line

The world is moving fast. The "9-5, work-until-65" model is becoming even more obsolete as technology reshapes the economy.

Our goal remains the same: to give you the optionality to live your life now while building a robust future. We watch the data closely so you can focus on your career, your family, and planning that next great experience.

Ready to see if your current financial plan is built for 2026?

We invite you to stop worrying about the markets and start investing in your financial future. Let's talk about how we can help alleviate your financial concerns and guide your journey to financial freedom.

Schedule Your Free Consultation Today!

_{This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.}