Macro Crossroads: Fed, AI, and Outlook

Issue 5.48 examines the macro environment heading into 2026: steady growth despite policy noise, supportive consumer and corporate finances, the lift from AI capex, and an outlook of real GDP around 2–2.5% with inflation near 3%.

Investment implications include richly priced equities and tight credit spreads, limited upside for returns, and upside risks to inflation if the Fed under-delivers on expected rate cuts—suggesting caution in bonds and equity valuations and a focus on earnings and policy developments.

For a copy of this week's Doll's Deliberations click on the following link December 1 or go to www.crossmarkglobal.com for additional insight and investment solutions.