Morningstar CIO Sees Inflation Contained as AI Earnings Lift Global Stocks in 2026
Updated
Updated · Morningstar · Aug 6
Morningstar CIO Sees Inflation Contained as AI Earnings Lift Global Stocks in 2026
3 articles · Updated · Morningstar · Aug 6
Summary
Mike Coop said equity markets have held up better than expected in 2026 because Iran-war oil shocks have not fed through to the economy and AI spending has not eroded profits.
Better-than-expected earnings have supported stocks, but Coop warned speculation is rising and AI-linked concentration now spans tech, communications, consumer names and parts of utilities.
Morningstar is leaning on diversification through healthcare, consumer staples and discounted markets such as Brazil, while also finding selective value in consumer discretionary.
On inflation, Coop said expanded global energy supply, greater use of renewables, AI-driven productivity gains and low-priced Chinese exports should keep price pressures capped, supporting measured central-bank policy.
Europe remains a selective market rather than a broad opportunity set, he said, with emerging markets preferred overall and only some luxury and auto stocks standing out after China-related selloffs.