Will Global Markets Find Their Footing? Fortress's Elizabeth Burton Weighs In on 2026 Outlook

Stepping onto the set of CNBC, Elizabeth Burton, the astute Head of Investment Strategy at Fortress Investment Group, offered viewers a deeply thoughtful and frankly, quite nuanced, perspective on the global economic outlook as we navigate the midpoint of 2026. It’s a moment, she suggested, where markets are still wrestling with the lingering effects of past shocks while trying to chart a clearer path forward. The air, you could say, is thick with both opportunity and a healthy dose of uncertainty.

The conversation, naturally, quickly turned to inflation – that ever-present specter in recent years. Burton acknowledged the significant strides made in taming the beast, but cautioned against premature declarations of victory. "My sense," she articulated, "is that while we've seen a deceleration, the underlying structural pressures haven't entirely dissipated. We're in a period where inflation might be less 'hot,' but it certainly isn't 'cold' yet. Think of it as a simmer rather than a full boil." This subtle but crucial distinction, she explained, has profound implications for central bank policy and, by extension, asset prices.

Regarding interest rates, Burton echoed a sentiment many have been grappling with: the era of persistently low rates, at least for the foreseeable future, seems to be firmly behind us. "We're likely operating in a 'sticky higher' environment," she mused, opting for a phrase that captures the essence of "higher for longer" but with a fresh twist. This means investors simply cannot afford to assume a rapid return to pre-2022 monetary conditions. Capital, she emphasized, now comes with a more meaningful cost, and that recalibration fundamentally shifts how we value assets and approach investment decisions across the board.

Delving into global growth, Burton painted a picture of uneven recovery. While certain economies, particularly the United States, have demonstrated a surprising resilience, others are still very much in the throes of adjustment. "Europe, for instance, faces its own unique set of headwinds, from energy security to demographic shifts," she observed. "And China, while massive, is undergoing its own structural transformation, which brings both opportunities and, frankly, some pretty significant domestic challenges." For investors, this simply underscores the critical importance of a geographically diversified approach, moving beyond broad brushstrokes to understand the granular details of regional performance.

Given this complex backdrop, it's perhaps no surprise that Burton strongly advocated for a strategic embrace of alternative investments. For a firm like Fortress, it’s truly their wheelhouse, and her passion for the subject was evident. "In an environment where traditional equity and fixed income markets are more correlated and potentially more volatile," she explained, "alternatives – think private credit, infrastructure, real assets – offer that crucial diversification. They can provide genuine downside protection and, importantly, uncorrelated returns that are simply harder to find in public markets these days." She emphasized their ability to capture value from long-term trends often overlooked by conventional approaches.

Private credit, in particular, received special mention. Burton highlighted how its flexible, bespoke nature allows investors to participate in areas where traditional bank lending has pulled back, creating compelling risk-adjusted returns. "It's about being nimble, underwriting thoroughly, and really understanding the underlying businesses," she stressed. "This isn't about chasing yield blindly; it's about providing essential capital to a robust segment of the economy that is still thriving."

As the interview drew to a close, Burton offered a balanced outlook, suggesting that while the path ahead remains intricate, there are clear avenues for astute investors to navigate and even thrive. It demands, however, a shift in mindset – away from past paradigms and towards a more dynamic, actively managed approach. "The world is changing, and so too must our investment playbooks," she concluded with a reassuring, yet firm, tone. It was a clear call to action, reminding us that careful strategy and a willingness to explore beyond the conventional are more vital than ever.