Economic Outlook 2026, Glass Half Full: Positives > Negatives

The economic outlook for 2026 is cautiously optimistic, with growth expected to broaden—and potentially accelerate—despite persistent inflation. Key drivers include fiscal and monetary stimuli, consumer spending fueled by the One Big Beautiful Act (OBBBA), and continued investments in artificial-intelligence-related capital. 

With the glass half full, the year highlights both opportunities and risks. Positives include a recovering manufacturing sector, deregulation, and reduced policy uncertainty, while challenges such as market volatility, potential increases in unemployment, and geopolitical tensions remain. Additionally, there are smidcap and quality stock investment opportunities for investors.