The BEAT Video - Q4 2026

Global growth is moderating, with significant divergence between developed and emerging markets. Developed economies are showing resilience, supported by strong labor markets and consumer spending. However, this strength masks underlying inflationary pressures that may force central banks to maintain higher interest rates for longer.

Emerging markets, conversely, are facing headwinds from slowing global demand and rising borrowing costs. This divergence presents a complex environment for portfolio allocation. Investors should consider tilting towards developed market equities for stability, while carefully evaluating opportunities in emerging markets that demonstrate robust domestic demand or benefit from specific secular trends.

Key areas to monitor include central bank policy decisions, particularly the Federal Reserve and ECB, and inflation data. The trajectory of geopolitical events also remains a significant wildcard for both developed and emerging market performance.