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MFS Investment Management

2026 Key Themes

As investors look to 2026, a number of key themes — from global policy stimulus to geopolitics to AI — are expected to shape macro and market conditions.

Five key themes for the second half of the year - Fixed income

Fixed income remains well positioned in the face of a challenging market environment, but global diversification is as critical as it has ever been.

A resilience recipe for what comes next

Resilience begins with being aware of where you have come from compared to where you are now and adjusting portfolios accordingly. This means moderating return expectations and eschewing more risk to make up for the reduced market beta.

Fixed income is attractive, but beware of 'fake' yield

Soaring policy rates have made cash a competitive asset again, prompting an overdue de-rating of risk assets. But just because yields are higher, that doesn’t mean risk is lower.

Fixed income: Volatility and uncertainty here to stay

Two words come to mind when describing fixed income markets at present: volatility and uncertainty. The macro factors influencing the current environment include COVID's legacy, war in Ukraine, high inflation, tightening monetary policy and a strong dollar.

The case for a strategic allocation to EMD in Australian portfolios

With equity valuations at all-time highs, fixed income yields at or near historic lows and volatility top of mind for investors, the emerging market debt (EMD) asset class may warrant a closer look for Australian investors.

Latest Updates

Taxation

3 ways to defuse intergenerational anger

With the upcoming budget increasingly likely to include bold proposals to alter the tax code I’ve outlined three incremental steps with fewer unintended consequences.

Economy

Why an extended US-Iran war will punish mortgage holders

The impact of the Iran War is far more than expensive petrol. Higher oil prices have secondary inflationary impacts that reverberate throughout the economy which could be bad news for Australians with mortgages.

Infrastructure

Don’t forget the yield

Global Listed Infrastructure dividends are forecast to grow 5-6% p.a over the next two years. After a hiatus, share buybacks are back on the agenda and will play an integral role in shareholder returns.

Iran war hands politicians free ticket to blame oil prices for inflation

Past oil shocks offer lessons for investors dealing with the fallout from the Iran War and the ongoing impact on inflation.

Economy

Japan 2026: A new PM heralds a new golden age?

Former Australian Prime Minister, Paul Keating, once said "When you change the government, you change the country." We're about to see whether that holds true in Japan.

Investment strategies

Why are central banks moving from US Treasuries to gold?

Central banks now hold more gold reserves than US Treasuries, signalling a shift in safe-haven asset strategy and portfolio diversification as geopolitical risks increase.

Strategy

Has global human wellbeing peaked? What the data reveals

Historically economic progress is measured by GDP growth but there is an increasing body of work that explores quantitative measures of wellbeing.

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