In this report, we highlight the forces that are likely to shape financial markets and identify potential investment opportunities for future.

 

Eric Lascelles, chief economist at RBC Global Asset Management believes that long-standing themes will likely recur, while new themes may emerge.

 

What Will Continue:

  • China should still be able to generate notable (albeit slower) economic growth
  • The global middle class should continue to grow, as emerging economies rise
  • Lower fertility rates and rising longevity
  • The tech sector as the center of economic growth

 

Emerging Themes:

  • Movement towards a multipolar world framework (away from The U.S.)
  • Artificial intelligence - a central theme for decades
  • The fading of the political will to act against climate change
  • Deglobalization at a slower rate
  • The bond market - a steep yield curve as global spending increases

 

What 2026 May Bring:

  • Immigration declines and policy decisions undermine long-term U.S. growth
  • Productivity should grow faster due to AI applications in robotics and sensors, health care innovations, and beyond
  • Oil demand could peak around 2029–2034
  • India and Southeast Asian nations could become increasingly influential in the global economy given their large populations and rapid growth
  • The stock market could generate more modest returns given higher valuation limits