Invesco Releases 2026 Investment Outlook "Resilience and Rebalancing"

Rhea-AI Summary

Invesco (NYSE: IVZ) released its 2026 Investment Outlook titled "Resilience and Rebalancing," forecasting further global stock gains driven by economic resilience, anticipated U.S. interest-rate cuts, and fiscal support across Europe, Japan, and China.

Key themes include: overweight non-U.S. assets, reduced U.S. dollar strength, opportunities in emerging markets, a call to rebalance away from AI concentration, and increased interest in private credit and alternatives.

The report highlights stronger foreign fiscal policy, improving EM prospects if Fed cuts occur, and mixed fixed-income opportunities with selective preference for U.S. high yield and European investment-grade credit.

News Market Reaction – IVZ

+0.62%

1 alert

+0.62% News Effect

On the day this news was published, IVZ gained 0.62%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Reality Check

Price: $26.47 Vol: Volume 4,951,139 is in li...

normal vol

$26.47 Last Close

Volume Volume 4,951,139 is in line with 20-day average 4,974,336, suggesting typical trading activity pre-outlook. normal

Technical Price $27.00 is just above the $26.995 52-week high and trading above 200-day MA at $18.94, indicating a strong pre-news uptrend.

Peers on Argus

IVZ was up 1.47% with peers mixed: BEN +0.86%, SEIC +0.12%, EQH +2.23%, TROW +2....

IVZ was up 1.47% with peers mixed: BEN +0.86%, SEIC +0.12%, EQH +2.23%, TROW +2.01%, and ARCC -1.00%. Moves were generally positive but not uniformly strong across all names, pointing to a blend of firm-specific and sector influences.

Common Catalyst Several asset managers had news on business developments and AUM updates, consistent with ongoing positioning around flows and product strategy.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	AUM update	Positive	+2.8%	Monthly AUM detail with net long-term inflows despite modest AUM dip.
Dec 08	Strategic partnership	Positive	-1.6%	Private markets partnership to expand U.S. wealth and retirement access.
Dec 03	Conference appearance	Positive	+3.4%	Participation in Goldman Sachs financial services conference investor discussion.
Dec 03	Investment outlook	Positive	+0.6%	Release of optimistic 2026 outlook highlighting global opportunities and themes.
Nov 11	AUM update	Positive	+3.3%	October AUM growth supported by market gains and strong net inflows.

Pattern Detected

Recent IVZ news has generally been followed by positive price reactions, especially around AUM updates and capital or strategic actions.

Recent Company History

Over the last two months, Invesco has reported stronger Q3 2025 results, multiple monthly AUM updates around $2.1T+, and a strategic private-markets partnership. These were complemented by participation in a major financial services conference and the release of the 2026 Investment Outlook. Most items saw positive one-day reactions, suggesting investors have been rewarding operational strength, capital management, and strategic positioning when new information is released.

Market Pulse Summary

This announcement outlines Invesco’s 2026 macro and asset allocation views, emphasizing resilience, ...

Analysis

This announcement outlines Invesco’s 2026 macro and asset allocation views, emphasizing resilience, non‑U.S. opportunities, emerging markets, and diversification away from concentrated artificial intelligence exposure. It fits alongside recent positive AUM trends and stronger Q3 2025 results. Investors may focus on how flows into private credit, alternatives, and non‑U.S. equities evolve versus these themes, while also monitoring future AUM updates, earnings, and capital actions for confirmation.

Key Terms

private credit, emerging markets, high yield, cryptocurrencies, +4 more

8 terms

private credit financial

"Private credit offers diversification. A more benign risk environment..."

Private credit is a form of borrowing where companies or organizations obtain loans directly from private lenders rather than traditional banks or financial markets. It often involves customized financing arrangements that are not traded publicly, making it a way for businesses to access funding outside of standard channels. For investors, private credit offers the potential for higher returns, but typically comes with increased risk and less liquidity compared to more conventional investments.

emerging markets financial

"Signs of continued strength emerging markets (EM). Central bank policies..."

Countries and regions whose economies are growing and modernizing faster than low-income nations but are not yet as stable or wealthy as advanced economies; they often have expanding middle classes, rising consumer demand and developing financial markets. For investors, emerging markets can offer higher growth potential—like backing a fast-growing startup instead of a mature company—but also bring greater risks from political changes, currency swings, weaker regulations and less market liquidity, which can make returns more volatile.

high yield financial

"High yield is supported by improving growth and low default risk..."

High yield describes an investment that offers a higher-than-average return, usually in the form of interest or dividends, because it carries greater risk of loss or default. Investors pay attention to high-yield opportunities like they would to a higher-paying job that comes with tougher conditions: they can boost income but require careful evaluation of the extra risk and the issuer’s ability to make promised payments.

cryptocurrencies financial

"Alternatives remain attractive, with private credit offering diversification and cryptocurrencies expected..."

Cryptocurrencies are digital forms of money or tokens secured by cryptography and recorded on shared digital ledgers, like a public spreadsheet that many computers maintain together. They matter to investors because their market values can swing widely, can act as speculative investments or portfolio diversifiers, and are exposed to unique risks such as regulatory changes, cybersecurity threats, and adoption shifts that can quickly affect prices.

industrial metals technical

"Industrial metals are expected to potentially benefit from stronger global growth..."

Industrial metals are common metals and alloys—like copper, aluminum, nickel and zinc—used to build infrastructure, manufacture goods and power industry. Investors watch them because their prices reflect demand for construction, manufacturing and clean‑energy projects; think of them as the economy’s building blocks, where rising metal demand often signals growth and falling demand can warn of a slowdown, affecting company profits and commodity portfolios.

precious metals technical

"while precious metals may see limited upside as inflation remains stable."

Precious metals are rare, naturally occurring metals such as gold, silver, platinum and palladium used as stores of value, industrial components and in jewelry. They matter to investors because their prices often move differently from stocks and bonds, acting like an insurance policy against inflation, currency swings or market turmoil; think of them as a tangible savings cushion that can stabilize a portfolio when other assets fall in value.

nominal wages financial

"consumption is climbing alongside nominal wages, which should help drive nominal growth..."

Nominal wages are the dollar amounts workers receive on paychecks — hourly rates, salaries or weekly pay — measured without adjusting for inflation or taxes. Investors care because changes in nominal wages affect companies’ labor costs and the amount consumers can spend, but they don’t show true buying power; think of seeing a bigger paycheck number without knowing whether it actually buys more groceries.

real yields financial

"Developed market government bonds are less appealing as real yields have fallen..."

Real yields are the return on a bond or fixed-income investment after removing the effect of inflation, showing how much your buying power actually grows. They matter to investors because they reveal the true profit from lending money, influence bond prices and stock valuations, and help compare investments across time — like knowing how much food you really have after accounting for spoilage rather than just counting items on a shelf.

AI-generated analysis. Not financial advice.

Markets poised for further gains in 2026 as economic resilience and policy support drive opportunities globally 

ATLANTA, Dec. 3, 2025 /PRNewswire/ -- Invesco today released its 2026 Investment Outlook with insights on expectations for global markets and asset implications. The Outlook from Invesco's Strategy & Insights group anticipates global stocks to rise further, continued interest rate cuts in the U.S., and fiscal support across Europe, Japan, and China.

"We enter 2026 with optimism, confident in the durability of businesses, encouraged by the direction of central banks and fiscal support, and mindful of the need for diversification as the market evolves," said Brian Levitt, Chief Global Market Strategist, Invesco. "2025 was a year marked by uncertainty, yet economies displayed resilience and markets delivered strong returns¹. We believe global equities may continue to rise in the new year and expect new opportunities to be unlocked as market leadership evolves."

Investment Themes

Resilient economies and markets set the stage for reaccelerating growth. We believe solid corporate and household balance sheets and lower leverage than in previous cycles form a base on which global growth can potentially improve.

Strong growth abroad. While Eurozone growth has been disappointing in recent years, policy is turning positive for the region. A ramp-up in fiscal spending from Germany should start to take effect in early 2026. Meanwhile, China's policy support is expected to keep growth on track despite external pressures. Japan is experiencing a structural return of inflation that has helped ignite a virtuous cycle where consumption is climbing alongside nominal wages, which should help drive nominal growth higher.

Private credit offers diversification. A more benign risk environment coupled with better growth, stable inflation, and easier U.S. monetary policy are conditions under which private credit could perform well. Private credit continues to be an attractive option for those seeking diverse sources of income beyond traditional credit.

Signs of continued strength emerging markets (EM). Central bank policies are diverging, weakening the U.S. dollar. A weaker U.S. dollar combined with better global growth and fewer EM inflation pressures should bode well for emerging market asset performance next year. Anticipated interest rate cuts from the Federal Reserve (Fed) in 2026 should also create room for EM central banks to continue lowering rates, supporting domestic demand and equity markets.

Broader participation as investors look to reduce artificial intelligence (AI) concentration. Key players in the AI theme have become expensive, prompting consideration for rebalancing to manage concentration risk. At the same time, reacceleration from a mid-cycle slowdown lays the groundwork for greater market participation and cyclically oriented sectors.

Investment Implications

"The current macroeconomic environment supports an overweight allocation to non-US assets," said Levitt. "We believe lower interest rates in the U.S. and greater government spending in Europe, Japan, and China should help lift the global economy out of a mid-cycle slowdown."

Within equities, the artificial intelligence theme has dominated global equity returns over recent years. We prefer to rebalance as concentration reaches multi-decade highs and look to opportunities in markets that stand to potentially benefit from improving global growth. Developed markets outside the U.S. offer more attractive valuations and greater potential for multiple expansion, supported by improving global growth and better earnings prospects. Emerging markets present the most compelling valuations among regions, though performance will vary widely.

In fixed income, EM local currency debt benefits from a weaker U.S. dollar and easing inflation pressures, supporting a favorable fiscal outlook. Developed market government bonds are less appealing as real yields have fallen, though they could rise if growth rebounds. Investment-grade credit remains tight but stable, with attractive opportunities in Europe. High yield is supported by improving growth and low default risk, making U.S. high yield slightly preferred.

In currencies, the U.S. dollar is likely to weaken with Fed rate cuts, favoring developed market currencies such as the yen and pound, as well as emerging market currencies with positive carry and improving fundamentals. Alternatives remain attractive, with private credit offering diversification and cryptocurrencies expected to perform well alongside risk assets amid growing adoption and supportive conditions. Industrial metals are expected to potentially benefit from stronger global growth and a weaker U.S. dollar, while precious metals may see limited upside as inflation remains stable.

About Invesco Ltd.
Invesco Ltd. is one of the world's leading asset management firms with over 8,300 employees helping clients in more than 120 countries. With $2.1 trillion in assets under management as of Sept. 30, 2025, we deliver a comprehensive range of active, passive and alternative investment capabilities. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com. 

1

Sources: International Monetary Fund (IMF) and Bloomberg L.P., Nov. 12, 2025. Global economic growth is projected to rise 3.2% in 2025 based on IMF estimates. The MSCI All-Cap World Index returned 21.98% year-to-date on a total return basis in US dollars. The MSCI World All Cap Index captures large, mid, small and micro cap representation across 23 developed markets countries.

Not a Deposit - Not FDIC Insured - Not Guaranteed by the Bank - May Lose Value -Not Insured by any Federal Government Agency

Contact:	Matthew Chisum	212-652-4368	matthew.chisum@invesco.com
	Brianna Stokes	212-323-4588	brianna.stokes@invesco.com

Important Information
All data are sourced from Invesco dated October 31, 2025, unless otherwise stated. This document contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. Nor does this constitute a recommendation of the suitability of any investment strategy for a particular investor. While great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. Investment involves risks. Past performance is not indicative of future performance.

All investing involves risk, including the risk of loss.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward- looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

Diversification does not guarantee a profit or eliminate the risk of loss.

Equities/Common Stocks - Stock and other equity securities values fluctuate in response to activities specific to the company as well as general market, economic and political conditions.

Foreign and Emerging Markets risk - The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

China Investing - Investing in securities of Chinese companies involves additional risks, including, but not limited to: the economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others; the central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership; and actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China.

Fixed-income investments are subject to credit risk of the issuer and the effects of changing interest rates. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating.

Currencies and futures generally are volatile and are not suitable for all investors.

High yield securities involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, financial conditions of the issuers and in interest rates may adversely impact the ability of issuers to make timely payments of interest and principal.

Alternatives- Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate.

Precious metals - Fluctuations in the price of gold and precious metals may affect the profitability of companies in the gold and precious metals sector. Changes in the political or economic conditions of countries where companies in the gold and precious metals sector are located may have a direct effect on the price of gold and precious metals. Investments focused in a particular industry, such as gold and precious metals, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Cryptocurrencies have historically exhibited high price volatility relative to more traditional asset classes, which may be due to speculation regarding potential future appreciation in value.

The further development and acceptance of the cryptocurrencies network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development or acceptance of the network may adversely affect the price of bitcoin and other crypto currencies.

Currently, there is relatively limited use of cryptocurrencies in the retail and commercial marketplace in comparison to relatively extensive use as a store of value, contributing to price volatility that could adversely affect an investment in the Shares.

Regulatory changes or actions may alter the nature of an investment in cryptocurrencies or restrict the use of cryptocurrencies or the operations of the cryptocurrencies network or venues on which cryptocurrencies trade. For example, it may become difficult or illegal to acquire, hold, sell or use cryptocurrencies in one or more countries, which could adversely impact the price of cryptocurrencies.

Positive carry is an investing strategy that uses leverage to increase your returns.

Past performance does not guarantee future results. An investment cannot be made directly into an index.

Private credit is debt financing provided by nonbank lenders, such as private equity firms and investment banks, to private companies, and is not traded on public markets.

AI technology companies are sensitive to specific risks such as small markets, business cycle changes, economic growth, technological progress, obsolescence, and regulation. These companies may have limited products, markets, resources, or personnel, making their securities more volatile, especially for smaller start-ups. Rapid technological changes can adversely affect their results. AI companies often rely on patents, copyrights, trademarks, and trade secrets to protect their technology, but there is no guarantee these protections will be sufficient. Significant R&D spending does not ensure product or service success.

12/25 NA5015494

 

FAQ

What did Invesco (IVZ) forecast for global stocks in its December 3, 2025 2026 Investment Outlook?

Invesco expects global stocks to rise further in 2026, supported by economic resilience, anticipated U.S. rate cuts, and fiscal support in Europe, Japan, and China.

How does Invesco (IVZ) recommend positioning between U.S. and non-U.S. assets for 2026?

Invesco recommends an overweight allocation to non-U.S. assets, citing lower U.S. rates and greater government spending abroad as supportive factors.

What does Invesco (IVZ) say about the U.S. dollar and emerging markets in 2026?

Invesco anticipates a weaker U.S. dollar with Fed cuts, which should help emerging market currencies and support EM local-currency debt and equities.

Why does Invesco (IVZ) advise rebalancing AI-heavy equity portfolios entering 2026?

The report notes AI concentration has reached multi-decade highs and recommends rebalancing to manage concentration risk and widen market participation.

What fixed-income and alternatives opportunities does Invesco (IVZ) highlight for 2026?

Invesco prefers U.S. high yield slightly, sees attractive European investment-grade credit, and highlights private credit and certain alternatives as diversification options.