In a recent “Mesirow Monday” segment on WGN’s Your Money Matters with Jon Hansen, Mesirow Wealth Management Senior Vice President and Director of Research Sumit Desai, CFA, discussed the economic outlook for 2026, the evolving investment landscape and the importance of diversification in today’s market.

Reflecting on Mesirow’s 88-year legacy, Desai emphasized the firm’s unique position: “We’re small enough to spend meaningful time with each client, but large enough to offer the resources of major multinational banks. Our research team is dedicated to supporting advisors so they can focus on what matters most—helping clients meet their goals and manage risk.”

2026 Economic outlook: Cautious optimism
Desai shared hopeful reservations for the year ahead. “We’re relatively optimistic about the economy, with the Federal Reserve expected to continue interest rate cuts and significant tax law changes likely to boost consumer refunds. The consumer remains strong, inflation is moderating, and corporate balance sheets are healthy. However, we remain vigilant about pockets of debt and market valuations,” he noted.

AI’s influence and the case for diversification
Desai stressed the outsized influence of artificial intelligence (AI) on markets. “The AI trade has driven much of the market’s growth, with the top ten companies—many AI-focused—now comprising 40% of the S&P 500. Investors may have more AI exposure than they realize, especially through index funds and ETFs,” Desai explained.

He encouraged investors to regularly review their portfolios with a financial advisor: “It’s not about avoiding AI, but about understanding your exposure and considering other opportunities. International markets, small and mid-cap stocks, and sectors like healthcare and energy offer valuable diversification.”

Lessons from market history and the value of flexibility
Desai drew parallels to past market cycles, reminding listeners that “valuation and owning quality businesses at attractive prices work in all environments. Diversification and humility are key—no one has a crystal ball.”

He also advised maintaining flexibility: “Staying invested is crucial for long-term growth, but it’s wise to keep some ‘dry powder’—safe, liquid assets—to take advantage of market volatility. Volatility is a feature, not a flaw, and can present buying opportunities.”

Mesirow Wealth Management is the firm’s founding capability, connecting clients to what matters today and across generations. The firm’s Wealth Advisors are differentiated by their personal, comprehensive wealth planning, expert investment selection and exceptional service. We invite you to learn more at mesirow.com/wealth.