Markets Group Maps 2026 Wealth Strategies Around $725 Billion AI Capex and 26% International Small-Cap Discount
Updated
Updated · marketsgroup.org · Jul 14
Markets Group Maps 2026 Wealth Strategies Around $725 Billion AI Capex and 26% International Small-Cap Discount
3 articles · Updated · marketsgroup.org · Jul 14
Summary
Markets Group’s 2026 New England private-wealth outlook says Boston advisors remain constructive on the economy, with roughly $725 billion of 2026 hyperscaler AI capex and 175 basis points of easing supporting a base-case GDP view near 2.5%.
Inflation is expected to settle in a 2.5% to low-3% range, pushing portfolios toward shorter-duration fixed income as advisors weigh near-term Fed cuts against the risk that long-term yields stay elevated.
International equities are the report’s biggest repositioning theme, led by international small-caps trading at a 26% discount to the S&P 500 despite about three times faster earnings growth; a 10% allocation is modeled to lift returns and cut volatility.
Within U.S. assets, advisors are broadening beyond the S&P 500’s top-10 names, which made up nearly 41% of the index by end-2025, while also favoring high yield at about 7% yield-to-worst and 3.7 years duration.
The report also frames alternatives as diversifiers rather than return enhancers, defending private credit as a manager-selection story and saying digital assets have become structurally relevant after regulation helped Bitcoin ETFs reach about $99 billion in AUM.
Is the booming private credit market a golden opportunity or the next systemic crisis in disguise?
Will the massive AI infrastructure boom derail the new Fed Chair's fight against inflation?
The $700 Billion AI Investment Surge of 2026: Debt, Market Shifts, and Economic Impact
Overview
In 2026, AI investment is reaching historic levels, with US tech giants like Alphabet, Microsoft, Amazon, and Meta driving a massive infrastructure boom. These companies are committing hundreds of billions of dollars to build out AI data centers and related technology, fueling a broader market revolution expected to reach $2.5 trillion. This surge is driven by fierce competition to capture AI’s benefits, leading to annual capital expenditures projected to exceed $2 trillion by 2028. The rapid expansion is reshaping markets, creating both significant opportunities and new financial risks as firms race to stay ahead in the AI era.