"Those assessments came from Bloomberg News interviews with 39 investment managers across the US, Asia and Europe, including at BlackRock Inc., Allianz Global Investors, Goldman Sachs Group Inc. and Franklin Templeton. More than three-quarters of the allocators were positioning portfolios for a risk-on environment through 2026. The thrust of the bet is that resilient global growth, further developments in artificial intelligence, accommodative monetary policy and fiscal stimulus will deliver outsize returns in all fashion of global equity markets."
"The call is not without risks, including simply its pervasiveness among the respondents, along with their overall high degree of assuredness. The view among the institutional investors also aligns with that of sell-side strategists around the globe. Should the bullishness play out as expected, it would deliver a stunning fourth straight year of bumper returns for the MSCI All-Country World Index. That would extend a run that's added $42 trillion in market capitalization since the end of 2022 - the mos"
Global asset managers who achieved double-digit equity gains for three straight years are maintaining exposure rather than cashing out. Expectations of solid growth and easier monetary and fiscal policies support a risk-on tilt, with portfolios overweight stocks and credit. Many managers favor emerging-market equities and do not expect a recession in 2026. More than three-quarters of allocators are positioning for a risk-on environment through 2026, citing resilient global growth, advances in artificial intelligence, accommodative monetary policy and fiscal stimulus as drivers. Risks include the pervasive consensus and investors' high degree of assuredness, which could amplify downside if conditions change.
Read at Fortune
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