AllianceBernstein (AB) Goldman Sachs U.S. Financial Services Conference summary

Macro and asset allocation outlook

• Inflation is expected to remain higher than in recent years, making real returns and diversification more challenging into 2026.

• U.S. assets are considered expensive, with significant client exposure to the U.S. across equities and fixed income.

• There is a strong push for clients to increase offshore allocations, especially in Asia and emerging markets, due to better valuations and growth opportunities.

• Dollar devaluation concerns are driving interest in gold and non-U.S. assets, with international clients more receptive to offshore investments.

• The trend toward moving assets offshore is expected to persist, not just episodically.

Fixed income and money market trends

• Money market funds remain near record highs, but interest in intermediate duration fixed income is increasing.

• High yield and investment-grade fixed income are seeing strong institutional demand despite tight spreads.

• Treasury issuance needs may keep the yield curve steep, encouraging further rotation from cash to fixed income.

• Performance in fixed income has improved recently, with the firm well positioned for a gradual shift back into the asset class.

Global equities and non-U.S. strategies

• Interest in non-U.S. equity products is rising among consultants and institutions, though U.S. retail flows remain limited.

• China and emerging markets, particularly in Asia, are gaining traction, with value strategies performing better outside the U.S.

• The firm is preparing to capture global equity rotation as U.S. valuations remain high.