Asset Allocation Outlook 3Q 2026: Staying Pro-Risk in a Broadening AI Cycle

An AI-driven capital spending cycle is gaining momentum and broadening beyond the technology sector. This wave of investment is helping support growth across the economy and improving sentiment for risk assets. As companies expand infrastructure, software, and related capabilities, new opportunities are emerging in both established leaders and enabling businesses.

Even so, investors should stay alert to valuation risk and the possibility that spending could slow if earnings or funding conditions weaken. For now, the trend points to a constructive backdrop where selective exposure may benefit from continued AI-led demand.