As we look forward to 2026, the economic backdrop feels more favorable than it did at the start of the previous few years. Global growth is expected to remain steady, even as trade pressures and geopolitical tensions continue to influence markets. Recent developments around the U.S., Greenland, and Venezuela have created heightened uncertainty in global politics, and reactions from allies and other nations reflect that complexity. Simultaneously, inflation has continued to come down from recent highs, and while prices are still elevated, the pace of increases is expected to slow, which will help restore some relief for households.
In the U.S., economic activity could pick up early in the year, helped by business investment and easing price pressures. A meaningful driver of this is the One Big Beautiful Bill Act, particularly the return of full and immediate depreciation for research and development expenses. This more favorable tax treatment is expected to encourage innovation, capital spending, and growth across many sectors. We are also closely watching the job market, where there are signs of slowing, though continued economic growth and possible interest rate cuts could help offset some of that risk.
Looking more broadly, global stock markets are expected to grow at a steady, moderate pace. As always, there will be periods of volatility along the way. Higher valuations in certain areas of the market may lead to more short-term swings, even if the longer-term trend remains positive. Many parts of the market continue to benefit from improving economic conditions and ongoing advances in technology. Oil prices could drift lower due to ample supply, while gold is expected to remain in demand as investors look for stability.
Overall, 2026 appears to be a year with both opportunities and challenges, and we will continue to guide you through it in the year ahead. If you have any questions or would simply like to talk, feel free to reach out or schedule time to meet below.