Category: Investment Insights

May extended April’s rebound supported by strong first-quarter earnings, the ongoing AI capex cycle, and expanding liquidity. Beneath the surface, breadth has narrowed, inflation concerns have resurfaced and the Iran conflict remains unresolved, underscoring an advance that is accompanied by growing risks.

US equity markets staged a powerful rebound in April, with the S&P 500 returning 10.42% as a ceasefire with Iran and stronger-than-expected first-quarter earnings reignited investor enthusiasm.

Equity markets came under pressure in March as the escalating conflict in the Middle East disrupted global energy supply chains and introduced material uncertainty to the inflation and growth outlook. Despite the near-term turbulence, corporate fundamentals remain sound, and we discuss the key risks and opportunities shaping the path forward.

US equities finished February modestly lower, with dispersion increasing to a historic level. A landmark Supreme Court ruling invalidated the administration’s tariff framework, while escalating US-Iran tensions drove energy to six-month highs, and AI-driven panic-selling spread across multiple sectors.

Equities maintained their momentum at the start of 2026, underpinned by strong corporate margins and a rotation into small cap stocks. Geopolitical shocks in Latin America and Europe, coupled with a weaker dollar, laid the groundwork for parabolic moves in precious metals. While fundamentals remain robust, recent bouts of volatility underscore the increasing complexity of the current environment.

Element Pointe is pleased to present our Market Outlook: Top Ten Investment Themes for 2026. In this piece, we highlight our views on the economy and explore some of the key topics that we believe will impact markets in 2026.