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Resilient Global Growth Amid Challenges

In a world facing inflation, rising energy costs, and geopolitical uncertainties, American Century Investments has unveiled a positive fourth-quarter investment outlook for 2026. With more than $350 billion in assets under management, the company asserts that while challenges persist, the landscape for investment opportunities has broadened significantly—especially with the impact of artificial intelligence (AI) technology.

Momentum from AI Investments

Victor Zhang, Chief Investment Officer at American Century, highlights the vital role of AI in shaping investment dynamics. He emphasizes that despite high inflation and interest rates remaining elevated, there are increasing opportunities across both equity and fixed-income markets. "Today's markets offer an increasingly broader range of opportunities," he stated, pointing to AI's far-reaching implications not just in tech, but across numerous sectors including financials, industrials, and energy.

Patricia Ribeiro, co-CIO for global equity at American Century, notes that resilience in global markets is evident through strong corporate performance and earnings. "Investment in AI remains a key driver of capital spending and earnings growth across these markets," she explained. Ribeiro underscores that sectors outside of technology are also leveraging factors contributing to growth, making them attractive for investors looking beyond the tech sphere.

Shifts in Capital Markets

American Century's fixed-income CIO, Charles Tan, discusses how significant debt issuance by hyperscale tech companies and AI-related capital expenditure are altering the global investing environment. He points out that spending on data centers and AI capabilities is bolstering competition for long-term capital, influencing trends on the Treasury yield curve.

Tan cautions against viewing rising U.S. Treasury yields as an isolated trend. Instead, they reflect wider shifts in capital markets, particularly across developed regions experiencing similar dynamics, such as high inflation and expanding government deficits. "The synchronized rise in global yields suggests a need for a higher term premium, but there's no immediate concern regarding the fiscal conditions in the U.S.," he remarked.

The Importance of Diversification

In these uncertain times, Ribeiro stresses the value of diversification in investing. She advocates for a disciplined approach to security selection and emphasizes the need to maintain a long-term investment strategy. "Diversification and a long-term perspective remain crucial as we navigate the ongoing macroeconomic and geopolitical risks," she advised.

Key Insights from the Outlook

The comprehensive investment outlook from American Century covers a wide spectrum, including insights on global macroeconomic conditions, equity markets, fixed income, multi-asset strategies, and sustainable investment trends. The firm encourages investors to stay informed and adaptable as the investment landscape continues to evolve in the wake of technological advancements and economic shifts.

About American Century Investments

Founded in 1958, American Century Investments is renowned for its commitment to performance and client relationships, undergirded by its unique business model that allows it to direct a significant portion of dividends to the Stowers Institute for Medical Research. With offices across key global cities—including Kansas City, New York, and London—they strive to balance client success with initiatives that contribute to medical breakthroughs. The insights and strategies shared in the fourth-quarter outlook reflect their intention to provide clarity and direction as investors seek opportunities in an ever-changing market landscape. For further exploration of their offerings, visit www.americancentury.com.