Global Investment Outlook 2026

Royce Investment Partners: Co-CIO Francis Gannon discusses how US small caps remain market leaders even as volatility and uncertainty are on the rise.

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.

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.

Templeton Global Investments maintains its conviction on Japanese equities in 2026, as evidence of economic normalization and broadening corporate reforms continues to build.

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.

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.

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.

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.

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.”

In this month’s Allocation Views, healthy earnings growth is disguising a bifurcation that has resulted in particularly challenging earnings expectations for large-cap growth stocks in 2026.

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.

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.

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.

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.