The Year Ahead

2026 PGIM Outlook, Best Ideas & Capital Market Assumptions

PGIM’s Outlook, Best Ideas and Capital Market Assumptions highlight actionable investment opportunities for 2026, offering guidance to help investors position portfolios for stronger outcomes. Explore the financial advisor or institutional investor experience for implementation ideas tailored to your needs.

Confirm Your Role

If you are an individual investor, please contact your financial advisor; the following information is intended for professional investor use only.

As you navigate through our insights for the year ahead, see the following pillars that are shaping our views:

Themes, Ideas, & Assumptions

The Era of Fiscal Dominance...and the End of Central Bank Innocence

CARRY ON: LEAN INTO STRUCTURAL GROWTH

PRODUCTIVITY BOOST REDUX

THE CONVERGENCE OF PUBLIC & PRIVATE CREDIT

Framed by the afformentioned four market‑shaping themes, PGIM’s Best Ideas highlights what we believe to be six of the most appealing investment opportunities for 2026:

The Compelling Convergences in a Credit Income Approach

The Case for Private Credit Secondaries

Global Living: Tapping into Structural Growth

AI: Achieving Scale

Emerging Markets: Pillars of Opportunity and Potential

Alts in DC: Innovating to Advance Retirement Security

 
Our Capital Market Assumptions underpin the long-run outlook for strategic allocations in certain strategies and multi-asset portfolios:

Fixed income...

...is expected to benefit from steady income and modest valuation support as yields normalize, although tight credit spreads limit upside.

Equities... 

...face subdued long‑run return potential due to elevated valuations, with developed ex‑U.S. and emerging‑market equities showing comparatively stronger structural growth.

Real Assets...

—including TIPS, REITs, and commodities—are supported by income and inflation sensitivity, with REITs experiencing slight valuation pressure.

Private Assets... 

...such as private equity, private real estate, and private credit, benefit from illiquidity premia, leverage, and income‑driven characteristics that exceed public‑market exposures.

Global 60/40 Portfolio...

...maintains a stable long‑term outlook, reflecting stronger fixed income expectations alongside moderated equity assumptions.

What's Ahead

2026 Market Outlook

A new year may prompt investors to rationalize the
intersection of major secular forces with near-term
cyclical developments. Our Q1 2026 Outlook assesses
the impact of key themes reshaping the macro and
investment landscape.

2026 Best Ideas

With our 2026 themes in mind, PGIM’s annual Best
Ideas report explores some of the most appealing
opportunities for investors, leveraging our breadth
of expertise across asset classes to present a diverse
set of strategies for constructing more resilient portfolios.

Capital Market Assumptions 

See how shifting economic conditions, divergent policies,
and valuations shape our 10‑year return expectations across
global equities, fixed income, real assets as well as securitized
and private market assets.

Explore the financial advisor or institutional investor experience for implementation ideas tailored to your needs.