MFS Investment Management
The latest research and outlooks in the ProAllocate library
- Macro
Midterms Shift Policy and Market Landscapes
US midterm elections flipping Congress triggered a selloff in AI-linked and semiconductor stocks over datacenter growth concerns, while strong payrolls data lowered odds of a December Fed hike. MFS's Jamie Coleman reviews a week marked by falling oil prices, rising volatility, and global central bank action.
- Macro
2026 US Midterm Elections: Gridlock Expected After Blue Wave
MFS argues that Democratic control of Congress after the 2026 midterms will likely produce legislative gridlock, pushing Trump toward executive action while limiting fiscal expansion and benefiting clean energy and healthcare over defense and AI sectors. It advises investors to use the outcome to confirm diversification rather than position around political predictions.
- Portfolio Construction
Portfolio Perspectives // Q4 2026
This quarterly review examines rising global bond yields, shifting stock-bond correlation regimes, a renewed US IPO market, and the integration of fundamental and quantitative investment approaches. It suggests investors may face a sustained higher-yield environment requiring more nuanced portfolio construction.
- Macro
Risk Off Tone to End the Week
Major central banks including the Fed under Kevin Warsh, the ECB under Christine Lagarde, and the Bank of Japan held rates steady amid elevated inflation, while US Q3 GDP growth beat expectations and geopolitical risks from Iran and Israel's inconclusive election persisted. Corporate earnings and record investment-grade bond issuance underscored resilient markets despite rotation away from megacap tech.
- Macro
Risk Off Tone to End the Week
The Fed, ECB and Bank of Japan all held rates steady this week as Iran-US tensions escalated and US GDP growth accelerated to 3.4%. Smaller, value-oriented equities outperformed AI-exposed megacaps amid concerns over slowing hyperscaler growth.
- Macro
A Divided Congress, a Unified Question: What’s Next for Markets?
Signum Global Advisors' Charles Myers argues US midterm elections will matter more politically than economically, with markets underpricing Iran escalation, tariffs, debt-ceiling conflict, and AI overinvestment risks. He urges investors to avoid letting political views drive long-term positioning.
- Equities
What Does the Return of Competition Look Like?
MFS's Robert M. Almeida argues AI is dissolving traditional boundaries across the technology stack, as firms move up to capture value and down to control costs, intensifying competition. He concludes this will compress returns and valuations for incumbents, making stock selection increasingly important.
- ETFs
Straight Talk | The Active ETF Arms Race: Liquidity, Capacity, and the Push for Better Client Outcomes
MFS's Jamie Harrison and Citadel Securities' Katie Stiner discuss why liquidity partnerships and capital-markets support determine which of the record number of new active ETFs survive amid rising delistings. They outline best practices for trading ETFs, including avoiding the close, using limit orders, and vetting issuers.
- Equities
Episode Summary | Investing in the Future of Cybersecurity
MFS argues that agentic AI is driving incremental cybersecurity spending, with network and identity security best positioned to benefit from platformization and continuous governance needs. It cautions that sector growth alone does not guarantee stock returns without valuation-aware selection.