1Q26 Economic & Market Outlook

KEY TAKEAWAYS:

1. Stock and bond markets saw healthy returns in 2025. The S&P 500 was up almost 18%, the third consecutive
   year of double digit returns, while the Bloomberg Aggregate Index was up over 7%.
2. The US economy remained resilient in 2025 despite fears of rising inflation, tariffs, and employment woes.
3. We believe the economy is primed for continued expansion in 2026, aided by a double shot of Fed
   stimulus, consumer resilience, an ongoing AI/datacenter capex boom, and productivity growth.
4. Stock market leadership should broaden as the AI arms race continues. Capex spending by megacap tech
   companies should continue to benefit companies that support the buildout across sectors.