Mesirow's Sumit Desai Discusses Economic Outlook and Diversification Strategy for 2026

Insights from Mesirow's Sumit Desai on the 2026 Market

In a thought-provoking segment of Mesirow Monday aired on WGN’s Your Money Matters with Jon Hansen, Sumit Desai, CFA, Senior Vice President and Director of Research at Mesirow Wealth Management, provided an insightful outlook for the 2026 market. Recognizing Mesirow’s long-standing legacy in financial services, Desai articulated a cautious optimism regarding the economic landscape, unearthing layers of complexity in investment strategies that are critical for navigating the future.

A Cautiously Optimistic Economic Forecast

Desai expressed a balanced perspective on the impending economic conditions for 2026. His analysis suggests potential growth driven by several pivotal factors: continued interest rate cuts by the Federal Reserve and notable tax rule adjustments likely to yield more generous consumer refunds. Connecting with the realities of consumer spending, Desai noted that the consumer remains robust, inflation trends appear to be stabilizing, and corporate financial health is markedly solid.

However, he remained vigilant about challenges such as pockets of debt and the rising concerns regarding market valuations. Desai’s sentiments resonated with the importance of active engagement in financial planning, stating, "We must be watchful, as certain sectors present risks that can be detrimental if not managed properly."

The Impact of Artificial Intelligence on Markets

One of the standout points of Desai’s address revolved around the burgeoning influence of artificial intelligence (AI) on market dynamics. He underscored the significant market push propelled by the AI sector, highlighting how the top ten companies—many anchored in AI technology—now account for nearly 40% of the S&P 500 index. Desai cautioned investors about potentially overwhelming exposure to AI, especially through index funds and ETFs, advocating for a careful assessment of portfolio diversity.

“Understanding your exposure isn’t just about riding the AI wave but also about exploring varied sectors like healthcare and energy, which promise to enrich one’s investment portfolio,” Desai added.

Lessons from Historical Market Trends

Reflecting on market cycles past, Desai illuminated the vital lessons that can be drawn for current and future investing strategies: “Valuation and quality are timeless principles in investment.” He emphasized that maintaining a diversified portfolio is fundamental, noting that no investor possesses a foolproof prediction of market fluctuations.

“The mantra of diversification echoes louder in today's market—a well-rounded portfolio can cushion against unforeseen downturns,” he asserted.

Moreover, he advised maintaining flexibility in investment decisions. He explained, “To stay invested is paramount for long-term success; however, it’s equally essential to set aside liquid assets as a 'dry powder'—which can be leveraged to seize market opportunities when volatility arises.”

Commitment to Client-Centric Wealth Management

In concluding his remarks, Desai reaffirmed Mesirow’s commitment to its clients. He elaborated, "Mesirow’s distinctiveness lies in our ability to provide personalized advisory services while upholding the resources typical of larger firms. Our research team is dedicated to ensuring that each advisor can concentrate on what is paramount—the financial well-being of their clients."

Mesirow Wealth Management, recognized for its exceptional service model, continues to serve as a critical link between clients and financial aspirations. Desai’s insights during the segment echo the firm's ethos of empowering clients to navigate the complex financial landscape through informed decision-making and strategic planning.

About Mesirow

Established in 1937, Mesirow is an independent and employee-owned financial services firm with a global footprint headquartered in Chicago. By marrying a personal touch with comprehensive financial strategies, Mesirow has positioned itself as a vital player in aiding clients reach their financial goals while also being a positive catalyst for community and cultural enrichment. Recognized multiple times as one of the Best Places to Work in Chicago, Mesirow strives to augment investment philosophies that safeguard the interests of its clients and communities alike. For in-depth insights, visit mesirow.com.