Inner Circle

Welcome to this month's investment insights

Welcome to the monthly investment strategy report for August 2026, where Macquarie Wealth Management Chief Investment Officer, Paul Huxford and the Investment Strategy team bring you updates across three key areas:

Positive economic backdrop tempered by inflation concerns

The case for risk assets remains strong, buoyed by resilient US growth and a robust earnings season. However, with the new Federal Reserve Chair placing greater emphasis on inflation and providing less forward guidance, expectations of further rate hikes are keeping markets cautious.

AI boom powers on, but investor scrutiny intensifies

Investors are closely watching the massive capital expenditures in the sector, increasing competition from both domestic and international players, and the emerging financing risks, as reflected in widening credit spreads.

Geopolitical and policy wildcards add uncertainty

White House policies on trade and global relations are creating inflationary pressures, and their potential to disrupt a soft economic landing remains a key variable. With mid-term elections approaching, investors are wary of further unpredictable moves, adding another layer of complexity to the market outlook.

Warm regards,

Justin Crawford
Head of The Private Bank