growth Prospects on the Horizon

Of Economics editorial team

The analysis of Filippo Casagrande, chief investments of Generali, points too several elements fostering potential growth, including declining energy prices, robust corporate profits, and the possibility of expansionary measures from a future Trump administration.

What should we expect from the markets in 2026?

«2025 ends with a substantially positive macroeconomic picture. Growth in the United States has shown signs of a strong recovery after a subdued first quarter and the tariff war seems to have resolved itself, without leaving too heavy an impact on the main exporting countries. In the United States the big question mark is the health of the labor market. After the slow but steady increase in unemployment during 2025, the next few months will be essential to understand whether we will see a further deterioration or stabilization, as outlined in the federal Reserve’s forecasts. In our view, 2026 sees several elements supporting growth, such as low energy prices, solid corporate earnings and possible expansionary fiscal measures by the Trump administration ahead of the midterm elections. Another issue to monitor is the trend of inflation. The numbers well below expectations in the United States published a few days ago should be taken with reserve, given the impact of the shutdown on the quality of data collection.”

AI, Monetary Policy & Investment Outlook for 2026

The topic of Artificial Intelligence will remain topical in 2026, given the ample investments already made and planned.However, we’ll see greater differentiation between prosperous and struggling companies in this field. Recent investor focus on company fundamentals – specifically, the ability to fund investments through internal resources – signals this trend. Companies lacking sufficient cash generation have faced market repercussions, with investors demanding a higher risk premium for those with higher debt. Conversely, companies with strong fundamentals are positioned for continued growth.

Regarding monetary policies, the Fed and ECB are diverging. the market anticipates a couple of rate cuts from the Fed in 2026 (54 basis points), while expectations for ECB cuts have diminished. This is due to the eurozone economy’s return to potential growth and inflation nearing its target, though with persistent pressure in the services sector (above 3% annual growth). The Fed faces additional uncertainty due to potential governance changes under President Trump. Jerome Powell’s expiring mandate and speculation about his successor raise concerns that the Fed’s policies might align with US Treasury objectives, potentially leading to more aggressive rate cuts to reduce interest expenses. A less self-reliant Fed could trigger volatility in US Treasury yields and broader risky asset markets.

For investments, we favor equities in the United States, Eurozone, and Emerging countries, while maintaining a neutral stance on Japan and the United kingdom. We continue to prioritize structural themes, including gold stocks – wich performed well at the end of 2025 – the european defense sector, and European banks.

How to Save Money on Your Energy Bill

Energy bills can be a big expense. Luckily, there are many simple things you can do to lower them. Here’s a look at ways to save, from small changes to bigger investments.

Simple,No-Cost Ways to Save

• Adjust Your Thermostat: Lowering your thermostat a few degrees in winter and raising it in summer can make a big difference.
• Unplug Electronics: Many electronics use energy even when turned off. Unplug chargers, TVs, and other devices when not in use.
• Use Natural Light: Open curtains and blinds during the day to use sunlight instead of lights.
• Take Shorter Showers: Heating water uses a lot of energy. Shorter showers save both water and energy.
• Wash Clothes in Cold Water: About 90% of the energy used by a washing machine goes towards heating the water.

Low-Cost Improvements

• Switch to LED Bulbs: LED bulbs use up to 75% less energy and last much longer than conventional bulbs.
• Seal Air Leaks: Use caulk and weather stripping to seal gaps around windows and doors. This prevents drafts and keeps your home cozy.
• Insulate Your Water heater: A water heater blanket can reduce heat loss and save energy.
• Use Power Strips: Plug multiple devices into a power strip and turn it off when not in use.

Larger Investments for long-Term Savings

• Upgrade Appliances: When it’s time to replace appliances,choose energy-efficient models with the Energy Star label. Energy Star provides information on efficient appliances.
• improve Insulation: Adding insulation to your attic, walls, and floors can substantially reduce energy loss.
• Replace Windows: New, energy-efficient windows can definitely help keep your home comfortable and lower your bills.
• Consider Solar Panels: Solar panels can generate clean energy and reduce your reliance on the grid. Learn more about solar energy from the Department of Energy.

Resources for More Information

• Energy Star – Information on energy-efficient products and practices.
• U.S. Department of Energy – Energy Savings – Tips and resources for saving energy.