IEQ Capital sees portfolios shifting to resilience as higher-rate environment persists

Equities were seen as supported more by earnings growth than multiple expansion, with leadership expected to broaden beyond a small group of AI-linked tech names.

Fixed income was positioned as an income and capital-preservation tool; tight credit spreads signaled a preference for higher-quality issuers and selective credit risk.

Private markets were viewed as favoring disciplined private credit, operationally driven private equity, and discounted secondaries. Commercial real estate showed signs of stabilization, while infrastructure demand had tailwinds.

IEQ Capital’s Q3 2026 outlook flagged resilient US growth, driven by fiscal spending, AI investment, and rising late-cycle volatility risks.

Higher-rate “new normal” was seen as the base case, pressuring valuations, raising financing costs, and shifting portfolio construction across public and private markets.