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Stock impact report

Market Outlook: AI valuations and tariff risks push investors to diversify in 2026 [BNN Bloomberg (Canada)]

Morningstar, Inc. (MORN) 
Company Research Source: BNN Bloomberg
A handful of technology giants continue to dominate market performance, but concerns are rising about concentrated valuations, geopolitical developments and potential changes to U.S. trade policy. BNN Bloomberg spoke with Philip Straehl, CIO for the Americas at Morningstar Investment Management, about the risks he sees heading into 2026 and where investors may find opportunities beyond the largest tech names. Key Takeaways A pending U.S. Supreme Court decision on tariff rules could introduce fresh volatility early in 2026. AI-linked stocks face rising valuation risks and shifting sentiment after an extended rally. A pullback in spending plans by major hyperscalers could pressure broader tech performance. International markets, including Brazil and the U.K., offer more attractive valuations than U.S. megacap stocks. South Africa stands out as a compelling early-stage opportunity tied to commodity-cycle dynamics. Read the full transcript below: ROGER: No one can predic Show less Read more
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