Looking at equity market valuations, we see tremendous opportunity for continued gains in 2026. But the outlook is not without risks. The conflict in the Middle East has significantly increased energy costs. Inflation is once again a concern. Both opportunity and disruption from Artificial Intelligence have increased market volatility. This year, there is a price for uncertainty. We are optimistic that earnings growth is simply too strong and that we will ultimately see investment gains in 2026.

Despite significant geopolitical shocks, markets have remained relatively stable this year. Geopolitical events rarely have lasting economic effects. Investors should be focused on corporate earnings, which are still expected to grow 17% this year, which is why investors often try to look past political headlines.

AI is going to be huge. In 30 years, we might not be able to imagine life without it — just like the Internet today. 

But getting from here to there is going to be bumpy. There will be crashes. There will be companies that fail. There will be times when it feels like the sky is falling. 

Know that you don’t have to bet everything on perfect timing to capture the upside.