Trade Tensions And AI: The Big Market Themes For 2026
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TD Wealth5.08K FollowersFollow5ShareSavePlay(13min)CommentsSummaryExpect U.S.-China trade to continue but likely with less volatility then 2025.Focus on high-quality names in tech as transition to AI economy may take longer than expected.Markets may be choppy at times, but staying invested is potentially a sound strategy long term. BlackJack3D/E+ via Getty Images With U.S.-China trade and AI potentially set to be the dominant market themes in 2026, how should investors be preparing? MoneyTalk discusses with Kevin Hebner, Global Investment Strategist with TD Epoch.
Transcript Greg Bonnell: US-ChinaThis article was written byTD Wealth5.08K FollowersFollowTD Wealth is an integral part of the TD Bank Group, which has approximately 24 million customers worldwide, 85,000 employees and CDN $1 trillion in assets on April 30, 2015. In Canada, TD Wealth services customers through: · TD Direct Investing which provides clients access to the information, tools and support that empower them to invest for themselves with confidence. · TD Wealth Private Client Group, which provides discretionary wealth management for high net worth clients and businesses. · TD Wealth Private Investment Advice provides full service brokerage for investors who want a high level of tailored advice and solutions. · TD Wealth Financial Planning develops and implements a financial plan for individual clients. At TD Wealth, whether you invest yourself or benefit from the knowledge provided by your advisor, you gain access to some of the industry's most highly regarded investment analysts, economists and market strategists.Quick InsightsHow might easing US-China tensions impact Chinese equities by 2026?A likely trade truce between the US and China should improve sentiment and make Chinese equities more investable, presenting a potential buying opportunity on de-escalation.What are the risks and outlook for AI hyperscaler CapEx through 2026?AI CapEx will remain robust, exceeding $300 billion, but slower monetization and potential spending pullbacks by firms like OpenAI could trigger a down cycle in 2026–2028.What portfolio positioning is recommended given current macro and tech trends?Maintain exposure to quality tech with strong cash flows, diversify internationally beyond US megacaps, add infrastructure assets, and anticipate a weaker US dollar to benefit non-US holdings.Recommended For You