Top Investment Sectors for 2026 Identified by Morgan Stanley

Morgan Stanley Research identifies key investment sectors for 2026, emphasizing technology, commodities, and U.S. equities. These predictions are driven by a supportive policy environment and expected earnings growth.

Serena Tang, Morgan Stanley’s strategist, explains these sectors due to favorable fiscal and monetary policies. Tang notes the role of AI and describes the economic landscape as uniquely supportive of these investments.

“The triumvirate of fiscal policy, monetary policy and deregulation are all working together in a way that rarely happens outside of a recession,” notes Tang. “This unusually favorable policy mix allows markets to shift focus from global macro concerns to asset-specific narratives—particularly those related to AI investments.”

The U.S. equities market could rise 14%, highlighted by potential 7,800 levels for the S&P 500. Federal rate cuts and corporate tax reductions are central to this projected gain.

Commodities like gold, copper, and aluminum emerge as strong picks, supported by physical demand and supply constraints. Brent crude, however, is anticipated to underperform, reflecting price volatility.

Overall, the report suggests a sustained bull market influenced by AI innovations despite potential challenges. High-yield bonds are also expected to perform well.

Historical data shows post-2013 bull market trends that will likely continue due to policy and AI advancements. This indicates potentially strong financial markets through 2026.