Best Assets to Buy Before 2026 | Investment Guide

Global ‘Money Printer’ Set to Fuel 5%+ Growth in 2026, Favoring Emerging Markets and Commodities

A surge in global money creation, coupled with a reluctance from central banks to aggressively combat inflation, is poised to drive nominal growth above 5% in 2026, creating a possibly lucrative environment for undervalued asset classes like emerging markets, value stocks, and commodities.

A macro fund manager anticipates a meaningful increase in money supply in 2026, driven by fiscal policies in the US, Germany, Japan, and Korea, alongside capital expenditures related to artificial intelligence. “Money creation in 2026 will be through the roof,” the manager stated, predicting a substantial “nominal growth impulse.”

The expectation is that central banks worldwide will largely accommodate this increase in liquidity,with many applying “loose monetary policy even in the face of sustained money printing.” This stance, the manager argues, is not necessarily a purposeful choice but stems from a willingness to overlook inflation targets. In 2025 alone, global fiscal deficits and private sector borrowing added a staggering $8.1 trillion in new inflationary money to the global economy.

Looking ahead to 2026, further fiscal stimulus and debt-fueled AI investments are expected to continue this trend, keeping the “global real-economy money printer” operating at a high rate.the manager’s firm projects significant money printing activity in Germany based on its large fiscal stimulus package.

Did you know? – Global fiscal deficits and private sector borrowing added $8.1 trillion to the money supply in 2025, signaling a significant increase in liquidity.

This environment, where increased money supply correlates with nominal growth, presents a unique chance for investors. According to the manager’s TMC Asset Allocation model,markets will likely fall between “The Squeeze” and “Goldilocks” scenarios,depending on whether core inflation remains around 2.5-2.8% or surpasses 3%. Both scenarios, however, are considered highly supportive for risk assets.

A ancient parallel is drawn to the 2005-2006 period, when global CPI was around 3% and central bank rates averaged 4-5%. Today’s conditions are similar, with global inflation around 3% and central bank rates also around 5%.However,the current situation is potentially more lasting,as the money supply is now driven by government deficits rather than private sector debt.

during the 2005-2007 period, emerging markets, value-oriented stock markets, and commodities performed exceptionally well. Notably, these are currently the most under-owned asset classes in institutional portfolios. After a decade of dominance by US technology stocks and limited capital flow towards value, emerging markets, and commodities, institutional investors are largely underweight these sectors.

Pro tip: – Consider emerging markets, value stocks, and commodities as potential investment opportunities, given their current undervaluation and historical performance during similar economic conditions.

The manager acknowledges a personal underweight position in these assets, posing the question to readers: “I am not long enough these assets. Are you?”

The firm is preparing for significant growth, anticipating the onboarding of large institutional investors in the first quarter of 2026 and planning international travel to meet with potential allocators.

This analysis was originally published on The Macro Compass, a community for macro investors, asset allocators, and hedge funds. [Link to The Macro Compass subscription tiers].

Reader question: – Do you believe central banks will maintain their current accommodative stance despite rising money supply,and how might this impact your investment strategy?

Why,Who,What,and How did it end?

Why: The core argument is that a surge in global money creation,fueled by fiscal policies and AI investment,will drive nominal growth above 5% in 2026. Central banks are expected to