Lisa Shalett & Erin McLaughlin on 2026 Outlook and Infrastructure | Bloomberg Surveillance

Navigating 2026 with Realistic Expectations

• 💡 Lisa Shalett from Morgan Stanley advises realistic expectations for navigating 2026.
• 📈 Her team forecasts 10-12% year-over-year growth, cautioning against assuming stimulus-driven growth of 15-20%.
• ⚠️ Investors should avoid getting "two out over their skis" by overestimating the impact of rate cuts, tax cuts, and deregulation.

Earnings and Margin Surprises

• 📊 The discussion touches on continued earning and margin surprises, a key question for Q1 and Q2 of the upcoming year.

Supply Chain Decisions and Infrastructure

• 🔑 Erin McLaughlin from The Conference Board highlights the lag effect on corporate decisions.
• 🚢 Companies are hesitant to onshore, nearshore, or change supply chains until major trade decisions regarding China, Mexico, and Canada are made, likely in the second or third quarter of next year.
• 🏗️ McLaughlin's unique background in transportation and engineering, combined with economics, provides insights into America's infrastructure.