Quarterly Outlook: Cross-Country Divergences
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Brandywine Global Investment Management674 FollowersFollow5ShareSavePlay(26min)CommentsSummarySeveral 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. hyejin kang/iStock via Getty Images Global Macro Outlook: Cross-Country Divergences By Paul Mielczarski Despite significant macroeconomic and trade policy shocks, 2025 proved a remarkably quiet year for developed market bond yields. The year-to-date high-low yield range of approximately 36 basis pointsThis article was written byBrandywine Global Investment Management674 FollowersFollowWe believe in the power of value investing, looking beyond short-term, conventional thinking to pursue long-term value. Since 1986, our global experience has generated investment insights and a range of differentiated fixed income, equity, and alternative solutions. As a specialist investment manager of Franklin Resources, Inc., Brandywine Global offers the advantages of an investment boutique backed by the resources and infrastructure of one of the world's leading asset managers. With headquarters in Philadelphia and offices in London and Singapore, we are committed to bringing value to all relationships.Quick InsightsHow should investors position in developed market bonds for 2026?Relative value trades are favored, with UK gilts expected to outperform eurozone bonds and a neutral duration stance recommended amid range-bound US yields.What is the outlook for the US dollar and its impact on portfolio allocations?Ongoing dollar weakness is expected as growth differentials narrow and central bank policies diverge, supporting increased allocations to non-USD and emerging market assets.Where are the most attractive opportunities in global equities for 2026?Opportunities are strongest outside the US, particularly in Europe, the UK, and emerging markets, where low valuations and improving fundamentals support a broadening of market performance.Recommended For You