After a turbulent 2025, diversified portfolios and quality assets may be a winning strategy for 2026
Mackenzie Investments has released its 2026 Market Outlook, outlining what financial advisors and investors should expect in a year that could once again challenge market discipline and emotional resilience.
The Toronto based firm says the shaken confidence of recent months, driven by trade disputes, political uncertainty and volatile market swings, is unlikely to fully fade in 2026. However, it argues that a steady, well-balanced investment approach remains the best way forward.
“Investors demonstrated resilience during a year dominated by relentless headlines about tariffs, central bank policy, immigration and geopolitics,” says 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.”
Mackenzie highlights three central forces that are expected to shape the global economy and markets throughout the year.
First, interest rate and policy dynamics with the firm believing that the Fed may not cut rates as aggressively as markets are hoping, with core inflation likely hovering around 3%. Government spending programs are expected to support economic growth, potentially adding about half a percentage point to US GDP.
Meanwhile, some moderate easing from the Bank of Canada is anticipated as households continue to grapple with costly mortgage renewals. Bond yields, however, are projected to remain fairly stable.
Second, Mackenzie maintains a constructive view on equities overall, citing several durable tailwinds including global capital spending cycles, supportive fiscal policies and productivity improvements linked to AI. While certain themes may still look overheated, earnings and margin growth should continue to underpin equity performance.
“Equities remain a compelling asset class for long-term investors,” explains 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.”
Third, commodities will be a strategic anchor and while gold remains attractive, Mackenzie sees broader opportunity in metals such as copper, steel, uranium and rare earth elements, particularly as infrastructure expansion and a global drive toward electrification fuel resource demand. A thoughtful allocation to commodities, the firm suggests, may help stabilize portfolios while offering upside linked to real-world industrial growth.
Mackenzie says that investors tempted to chase momentum or retreat into cash should consider maintaining diversification across regions, asset classes and sectors, with a heightened focus on quality. Investors who can tune out the noise and keep a strategic lens on portfolio construction may be best positioned to benefit from both the challenges and opportunities that lie ahead.
