Mackenzie Investments 2026 Market Outlook: Resilience, Diversification and Fundamentals Expected To Guide Investors Through Uncertainty

Mackenzie Investments 2026 Market Outlook: Resilience, Diversification and Fundamentals Expected To Guide Investors Through Uncertainty

TORONTO, Nov. 25, 2025 /CNW/ - Mackenzie Investments ("Mackenzie") today released its 2026 Market Outlook. The annual report offers financial advisors and investors insights into the economic and market forces expected to shape investment strategies in the year ahead.

Following a year marked by political tumult, tariffs, tough trade negotiations and sharp market swings, Mackenzie anticipates that 2026 will continue to test investor resolve. Maintaining diversification and balance will be important amid stretched valuations and compressed risk premiums.

"Investors demonstrated resilience during a year dominated by relentless headlines about tariffs, central bank policy, immigration and geopolitics," said Steve Locke, Chief Investment Officer, Fixed Income and Multi-Asset Strategies, Mackenzie Investments. "As we look to 2026, we believe there will continue to be challenges – but also opportunities for investors who stay disciplined, prioritize quality and take a strategic approach to portfolio construction."

In its 2026 Market Outlook, Mackenzie identified three major factors it believes that will drive global economies and markets in the year ahead:

Policy and Rate Dynamics: Fewer Cuts, Fiscal Tailwinds
The U.S. Federal Reserve may not deliver as many rate cuts as markets expect, with core inflation hovering near 3 per cent and fiscal stimulus from the One Big Beautiful Bill Act lifting domestic growth. Tax reductions and pro-growth incentives could add roughly 0.5 per cent to U.S. GDP, supporting consumer spending and business investment. Mackenzie believes these dynamics will require investors to stay nimble and avoid over-reliance on aggressive rate-cut assumptions. Modest easing by the Bank of Canada is likely as mortgage refinancing costs burden households. Bond yields should remain relatively steady with a slight curve steepening.

Equity Market Resilience Amid Valuation Concerns
Despite concerns about exuberant conditions in certain sectors, Mackenzie maintains a constructive view on equities, supported by strong fundamentals: fiscal stimulus, dovish central banks, a global capital spending cycle and productivity gains from widespread artificial intelligence (AI) adoption. While frothy pockets continue to exist in some thematic areas, Mackenzie expects most equities will be well supported by earnings growth, improving margins and reasonable valuations.

"Equities remain a compelling asset class for long-term investors," said Lesley Marks, Chief Investment Officer, Equities, Mackenzie Investments. "While we expect some volatility, the underlying drivers of earnings growth, from fiscal stimulus to technological innovation, provide a strong foundation for equity markets. The key is to stay disciplined and diversify beyond the familiar names."

Commodities as a Strategic Diversifier
Mackenzie expects commodities to continue to play a vital role in portfolio diversification. While gold remains attractive despite short-term price pressures, infrastructure and technology investment have been driving demand for other commodities, like steel, copper, uranium and rare earth elements. Rising electrification initiatives from data centre expansion further support commodity exposure as part of a balanced strategy.

To learn more about Mackenzie Investments' 2026 Market Outlook and additional investible themes, including Quantitative Investing, International Markets, Energy and Commodities and Private Markets, visit: https://www.mackenzieinvestments.com/en/institute/insights/market-outlook

About Mackenzie Investments
Mackenzie Investments ("Mackenzie") is a Canadian investment management firm with approximately $242 billion in assets under management as of October 31, 2025. Mackenzie seeks to create a more invested world by delivering strong investment performance and offering innovative portfolio solutions and related services to more than one million retail and institutional clients through multiple distribution channels. Founded in 1967, it is a global asset manager with offices across Canada as well as in Beijing, Boston, Dublin, Hong Kong and London. Mackenzie is a member of IGM Financial Inc. (TSX: IGM), part of the Power Corporation group of companies and one of Canada's leading diversified wealth and asset management organizations with approximately $307 billion in total assets under management and advisement as of October 31, 2025. For more information, visit mackenzieinvestments.com

SOURCE Mackenzie Investments