American Century Warns $340 Billion Markets Underprice Q3 Risks as AI Trade Broadens
Updated
Updated · PR Newswire · Jun 25
American Century Warns $340 Billion Markets Underprice Q3 Risks as AI Trade Broadens
3 articles · Updated · PR Newswire · Jun 25
Summary
American Century’s Q3 2026 outlook says markets are not charging enough risk premium for either upside or downside scenarios, even though steady growth remains its base case.
Geopolitical tension is clouding inflation and rate expectations, the firm said, with one tail risk tied to lower energy prices and renewed Fed tightening and another to prolonged Strait of Hormuz constraints lifting oil and hurting growth.
Beyond risk management, the $340 billion asset manager sees opportunities widening past the crowded AI trade into emerging markets, renewable energy, supply chains and diversified energy producers.
American Century said elevated volatility calls for active security and sector selection, but investors should keep long-term goals such as retirement and education funding ahead of short-term market swings.