Multi-Asset Income Outlook: 3 Key Questions For 2026
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AllianceBernstein (AB)4.93K FollowersFollow5ShareSavePlay(9min)SummaryAfter a turbulent start to 2025 defined by US policy shocks, attention shifted to AI optimism and corporate fundamentals, with earnings and capex intentions often eclipsing traditional data releases.Recent negative headlines around a handful of issuers have sparked concerns about credit health, but we believe these stresses remain isolated rather than systemic.Within equities, we favor the US for its strong profitability and balance sheet resilience, but diversification is key. tadamichi/iStock via Getty Images By Karen Watkin, CFA, Fahd Malik and Edward Williams Equity markets, the AI spending boom and credit markets are in focus. After a turbulent start to 2025 defined by US policy shocks, attention shifted to AIThis article was written byAllianceBernstein (AB)4.93K FollowersFollowAB is a research-driven investment firm that combines investment insight and innovative thinking to deliver results for our clients. At AB we believe that research excellence is the key to better outcomes and as a result we have built a global firm with exceptional research capabilities. We offer a broad array of investment services that span geographies and asset classes to meet the needs of private clients, mutual fund investors and institutional clients around the world.Quick InsightsIs the current global equity bull market nearing exhaustion?No, historical context suggests the rally is 'middle-aged,' with supportive macro conditions and earnings growth, though selectivity is increasingly important.Does AI-driven market concentration pose systemic risk?AI leadership introduces fragility, but returns are underpinned by earnings and cash-funded capex; diversification and low-volatility stocks are recommended to mitigate downside risk.How should investors approach credit markets given current conditions?Credit remains fundamentally sound, but tight spreads and limited upside favor higher quality, shorter maturities, and disciplined multi-asset income strategies for risk management.Recommended For You