On Air with Altair | 3Q2026

What This Video Is About

The video discusses the current economic outlook, focusing on the Federal Reserve's interest rate decisions, the US economy, and the impact of AI on global growth. Jason Lori, Chief Investment Officer at Altter Advisers, shares insights from their latest quarterly commentary.

Major Ideas Discussed

• The Federal Reserve raised short-term interest rates by 0.25% in September, but may not need to continue raising rates due to Iran war-related energy costs driving inflation and long-term bond yields already making borrowing more expensive.
• The US economy is projected to grow by 3.5% in the third quarter, driven by consumer spending and the AI infrastructure buildout.
• Global AI-related spending is expected to exceed $1 trillion in 2026 and climb higher in 2027, despite public pushback over environmental impact and electricity usage.
• The current bull market for US stocks has averaged 21.5% annual returns over the past four years, with the S&P 500 up about 13% in 2026, driven by earnings growth in AI and energy sectors.
• Higher interest rates have hurt small caps, and a stronger dollar has pressured international stocks, but these headwinds are expected to ease.

What to Watch Next

Investors should monitor the midterm election results, which may cause temporary market volatility but could also add policy certainty for businesses. History suggests markets usually perform well the year after a midterm election. Additionally, higher bond yields are helping to fight inflation and offer investors an opportunity to lock in higher income, while AI and consumer spending will remain powerful economic drivers.