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Research Note

2026 Market Outlook

Published January 2026 - Escanceaster Capital Investments

Our 2026 outlook focuses on liquidity normalization, earnings durability, and the resilience of business models in a higher-rate environment. We anticipate continued dispersion across sectors, emphasizing selectivity and balance sheet quality.

Portfolio construction remains anchored in downside analysis. We are prioritizing exposure to companies with demonstrated pricing power, recurring revenue, and disciplined capital allocation. In fixed income, we remain tactical as rate volatility persists.

Risk oversight will remain elevated as policy uncertainty and geopolitical dynamics shape the macro landscape. Our allocations are designed to preserve capital while positioning for long-term compounding.