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AAM's 2026 Investment Outlook


Structural and Cyclical Factors Support Greater Opportunities

2025 had a bit of everything for everyone when it comes to the markets. For years, we stated that the markets seem to be following the “rule of entropy” in which markets move from stability to chaos versus the logical opposite. The challenge is universally defining what is stable and what is chaos. However, underlying this belief is that the only true accepted state of affairs is that uncertainty has, and will always be, constant. While this proves to be unnerving to nearly all investors, it is this lack of predictability that reveals opportunities. Cliff Corso, AAM's CEO and CIO, began his year-end review and year-ahead outlook with the following quote:


“The greatest danger in times of disruption is not the disruption; it is to act with yesterday’s logic.”
— Peter Drucker, one of the best-known and most widely influential thinkers and writers on the subject of
management theory and practice.

It points to the overdependence on recency. This becomes evident when examining Wall Street’s changing expectations for the S&P 500 during throughout the year.

CLICK HERE to read the full 2026 Investment Outlook

 

Cliff Corso | Matt Lloyd | Jacob Johnston, CFA
Paul Bukowski, CFA | Brian Gilbert | JB Golden, CFA

This commentary is for informational purposes only. All investments are subject to risk and past performance is no guarantee of future results. Please see the Disclosures webpage for additional risk information at commentary-disclosures. For additional commentary or financial resources, please visit www.aamlive.com.

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