Markets and investors broadly currently confront challenging times. Geopolitical tensions are running high, leading to a war in the Middle East which brings along higher oil and energy prices worldwide. This adds to lingering tariff pressures and a growing uncertainty around job growth and business disintermediation due to the rollout of AI.
This is a brew for lower consumer confidence, business uncertainty, and growing fears over stagflation. It is not the stagflation of the 1970s with rampant inflation and sky-high rates, but more of a “stagflation-lite” scenario — things are slowing, but prices are going up.
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