2026 Outlook - The Discipline Dividend: Capturing Opportunity and Managing Risk in an AI-Driven Market
By Crescent Team
Key observations from our 2026 Outlook:
Our 2026 Capital Market Assumptions point to a tempered outlook as higher valuations and softer yields reduce return potential.
Artificial intelligence (AI) is already woven deeply into equity markets, making exposure management essential. Our playbook calls for measured positioning and disciplined risk sizing to capture opportunity while avoiding excess.
Elevated valuations shape our positioning. We favor high quality fixed income for risk-adjusted returns, select global equity opportunities and alternatives to help manage volatility without overhauling portfolios.
The year ahead will likely bring gradual shifts rather than sweeping change. With strong foundations in place, most portfolios need only modest adjustments, underscoring a timeless principle that sometimes, no action is the best action.
Our 2026 Outlook contains a look at financial market conditions, our 10-year capital market assumptions, and our investment themes for 2026.