{"id":2343,"date":"2026-01-12T05:21:52","date_gmt":"2026-01-12T05:21:52","guid":{"rendered":"https:\/\/actinvest.com.au\/?p=2343"},"modified":"2026-01-12T05:21:52","modified_gmt":"2026-01-12T05:21:52","slug":"2026-outlook-economic-upside-stock-market-downside","status":"publish","type":"post","link":"https:\/\/actinvest.com.au\/index.php\/2026-outlook-economic-upside-stock-market-downside\/","title":{"rendered":"2026 outlook: Economic upside, stock market downside"},"content":{"rendered":"<p>AI\u2019s rapid evolution has increased its potential to become a transformative economic force, with promising implications for productivity across industries.<\/p>\n<p><img loading=\"lazy\" alt=\"\" height=\"344\" src=\"https:\/\/acctweb.com.au\/images\/globe-11.jpg\" width=\"550\" \/><\/p>\n<p>.<\/p>\n<div>Adoption is accelerating, and while today\u2019s leaders dominate headlines, tomorrow\u2019s winners may look very different. The 2026 Vanguard economic and market outlook (VEMO) delves into potential implications.<\/div>\n<div>\u00a0<\/div>\n<div>Despite strong near-term earnings expectations for hyperscalers\u2014the firms behind massive AI investments\u2014we believe the best investment opportunities will emerge outside this sector. Our capital markets projections show that the strongest risk-return profiles across public investments over the coming five to 10 years are, in order: high-quality U.S. fixed income, U.S. value-oriented equities, and non-U.S. developed markets equities.<\/div>\n<div>\u00a0<\/div>\n<div>We expect returns for U.S. stocks\u2014particularly growth stocks\u2014to be muted over the next five to 10 years. In contrast, bonds remain attractive, underpinning our VEMO portfolio allocation of 40% stocks and 60% bonds. The leading investment opportunities are both offensive and defensive, making sense whether AI changes how we live or falls short and government deficits dominate the investing landscape.<\/div>\n<div>\u00a0<\/div>\n<h2><u><a href=\"https:\/\/www.vanguard.com.au\/personal\/content\/dam\/intl\/australia\/shared\/documents\/resources\/VEMO_2026_Australia_FINAL.pdf\"><strong>Dive into the 2026 outlook<\/strong><\/a><\/u><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>AI\u2019s rapid evolution has increased its potential to become a transformative economic force, with promising implications for productivity across industries.<\/p>\n","protected":false},"author":1,"featured_media":2344,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2343"}],"collection":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=2343"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2343\/revisions"}],"predecessor-version":[{"id":2345,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2343\/revisions\/2345"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media\/2344"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=2343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=2343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=2343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}