10 Trends to Watch For in 2026: Welcome to the Future

What’s inside:

• The AI Revolution
• Running into a BRICS Wall
• Difficult Demographics
• Trust in a Digital World
• Going Beyond Human
• Renovating Real Estate
• A Food Reboot
• A Developing Consumer Debt Crisis
• Financial Nihilism
• A Return to the Real World

Every generation experiences normalcy bias, an all-too human tendency to expect that conditions will remain normal despite signs to the contrary. We rely on history and life experience, believing the future will bear some resemblance to the past. In the investment world, we often look to historical data to help inform our decisions for the future, illustrating our confidence in the past to guide our forward-looking expectations. But change is relentless and the future will unfold in an unpredictable manner; most generations are taken by surprise by how fundamentally the world can change in just a few short years or decades.

“May you live in interesting times” is said to be a curse, and this certainly comes to mind as 2025 draws to a close—we are poised to experience seismic technological breakthroughs, cultural upheaval, and political realignments.  These changes have the potential to impact the investment landscape in interesting and profound ways, as this background shapes the business environment and consumer sentiment that underlie market movements.

In this article, we take a look at some of what we see as the major trends and big-picture issues to watch for as we head toward a new year, particularly those that are likely to drive broad changes—culturally and then in the investment landscape. In this process, we swap our investment hats for futurist hats to give our audience a peek into what may be coming in 2026 and beyond. We don’t present these as investment ideas or suggestions—think of it more as a bold window into an unpredictable future, as we explore several key factors influencing the overall environment.

Here are ten trends to watch for in 2026 (read or download the pdf or continue reading below):

1. The AI Revolution

Futurists proclaim that we are at the beginning of a fourth Industrial Revolution, as artificial intelligence is on the cusp of transforming the way we live. Not since the advent of the internet has the anticipation of technological change been higher. Will artificial intelligence bring a new era of productivity and prosperity, liberating humanity from mundane and dangerous tasks, or will we struggle to find a new normal as jobs are displaced and our world remade by technology?

Artificial intelligence is clearly changing everything. However, some of the grand claims made about AI seem to be falling short, and it is taking more time to integrate than many experts thought. We also need to contend with some of the dangers and challenges of AI as we begin to rely on it. AI models have been found to engage in blackmail, have re-written code and lied about it, and have been found to prioritize user satisfaction over accuracy. How do we distinguish between real and AI-generated content, and adapt our copyright and intellectual property rules? We anticipate that this process will unfold slowly, over a number of years, with intermittent leaps forward. Many of the firms that were early adopters are now finding that AI is falling short of its initial promises and are already slowing down to seek a more cautious, thoughtful approach. We are optimistic about the potential benefits of AI, but believe the road to integration may take some time.

Given AI’s tremendous potential to enhance economic prosperity and advance geopolitical power, it’s no surprise that the U.S., China, and other nations are now engaging in an intense race to develop proprietary AI technologies and infrastructure. But the road to AI supremacy depends on acquiring the energy and resource needs to support it. AI is one of the fastest growing drivers of global electricity demand, with data centers consuming more energy than some nations. GPT-4 training alone consumed enough electricity to power San Francisco for three consecutive days. AllAboutAI reports that if the current trajectory continues, AI could consume more than 1,000 terawatt-hours by 2030—the same as the entire electricity demand of Japan today. And Penn State’s Institute of Energy and the Environment estimates that training AI models could account for 20% of global electricity use by 2030-2035. Communities near data centers are finding their power grids already strained and electric bills rising. Then add water usage: researchers expect AI in the U.S. to consume about 193-297 billion gallons of water per year—that’s as much as the annual household water usage of 6-10 million Americans.

Additionally, the growth of artificial intelligence is driving expanding demand for many of the critical materials required for batteries and electronic components such as gallium, germanium, copper, high-purity alumina, tungsten, cobalt, lithium, graphite, neodymium, dysprosium, neon, and ABF substrates. Currently, China is the world’s dominant supplier for most of these materials, and others can only be obtained through fragile supply chains. For the U.S. to achieve its AI goals, it will need to either develop its own internal sources or diversify its international sources.

Watch for: An accelerated race for AI materials and technology.

2. Running Into a BRICS Wall

After decades of economic and military leadership, the United States is now facing emerging challenges to its hegemony, in particular from the BRICS economic alliance—a group that includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and United Arab Emirates. As part of this new trade alliance’s goal, BRICS countries are working to reduce its member states’ reliance on the U.S. dollar as reserve currency in international trade.

Change is already underway: when trading with China, a growing number of countries across Asia, the Middle East, and Africa are now using the yuan to bypass the U.S. dollar. And recently, BRICS, led by Russia, announced a plan to launch a dedicated precious metals exchange that would bypass the U.S. dollar and Western-controlled systems entirely. While BRICS’ de-dollarization plan will likely take years to unfold, it could potentially rival or surpass OPEC’s 1970s oil price control strategy in terms of effectiveness.

This growing multi-polar world necessitates a different approach to statecraft. With global interdependencies and trade relations, nations are looking for alternatives to military conflict and increasingly prefer to use economic and other forms of power. Tactics such as trade embargoes, sanctions, export controls, and selective investment strategies have been growing in popularity. Countries are looking for ways to gain strategic advantages and achieve political objectives without the destruction and violence of traditional military approaches.

Will BRICS turn out to be a paper tiger, or will it achieve its goals? While the ultimate impact of de-dollarization has yet to be seen, some outcomes could potentially include a weaker U.S. dollar, higher inflation, and reduced U.S. economic leverage and ability to impose and enforce sanctions.

Watch for: The advent of a multi-polar world and economic impact of de-dollarization.

3. Difficult Demographics

The U.S. population is older than it has ever been, and is getting even older: the percentage of Americans aged 65 and older is projected to increase from 17% in 2022 to 23% in 2050—by numbers, that’s a rise from 58 million to 82 million. At the same time, The U.S. fertility rate was 3.1 live births per woman in 1950; that has declined to only 1.6 live births per woman in 2025. While Americans are staying independent and working longer into their older years, we are facing a widening caregiving gap.

One way we might step up to meet this challenge is through advances in medicine and technology. Think: voice-activated wheelchairs, fall-preventing smart walkers, and AI mobility vests for the visually impaired. Also exciting are interactive robots that provide senior healthcare services, such as Robear, which lifts and moves people; Moxi for delivering medication in hospitals; and Paro Therapeutic Robots, which provides pet-like companionship for dementia patients.

But even more important are the non-technological solutions such as investment in preventive care, enhancing access to healthcare for older adults, and strengthening community support networks to combat isolation.

Watch for: Robots in elder care.

4. Trust in a Digital World

As reports of cyberattacks and digital fraud escalate, it’s hard to know who—or what—to trust. So, when governments and central banks propose new technologies like central bank digital currencies (CBDCs), dollar-backed stable coins, digital ID, tokenized assets, and payment systems, public skepticism is naturally high. CBDCs are attractive to governments because they allow for easier implementation of monetary policies and better tracking of transactions, they can accelerate international transfers, they may offer greater financial inclusion to those without access to traditional banking, and they can be programmed for increased oversight and regulation. But the recent failure of a U.S. CBDC, in which public outcry over fears of potential government surveillance and suppression of private financial transactions drove the government to abandon its CBDC plans, illustrates that there are still trust hurdles to overcome.

Digital currencies are already in circulation in some countries, and in testing in others. China, Nigeria, and the Bahamas all have central bank digital currencies in use, while India, Brazil, and Sweden are preparing to launch their own CBDCs. CBDCs will likely proliferate in the coming years, especially as some of the early kinks are worked out.

We expect the public debate to soon shift to the topic of digital ID. With AI tools widely available, cyberattacks, fraud, and identity theft are becoming more of a threat. Creating a single digital identification system that utilizes biometric authentication such as facial ID, fingerprints, retinal scans, etc. could potentially help to secure individuals’ online activities—everything from banking to messaging to social media to online ordering. As it grows ever more difficult to identify whether you are interacting with a real human person or an artificial intelligence online—and with AI learning to bypass online verification tools, as ChatGPT has been shown to do—digital ID may be useful for distinguishing humans from “bots” online.

The flip side is that digital identification won’t eliminate the risk of hacking, and it raises high-stakes risks when it comes to privacy and anonymity. Having a centralized point of failure means hackers have to breach only one entry point to gain full access—and they are developing methods for faking or stealing biometric data. Digital ID also serves as a potential gateway for surveillance, risking abuses of power. In India, an early digital ID adopter, public opinion about Aadhaar has become increasingly polarized as reports surface of data leaks, criminal hacks, and other major vulnerabilities.

Watch for: An evolving debate on the pros and cons of CBDCs and digital identification.

5. Going Beyond Human

Can you picture yourself wearing a super-soldier exoskeleton, or reprogramming your genes to extend your lifespan? Transhumanism is a movement that advocates for the use of science and technology to modify and augment human abilities with the goal of overcoming biological limitations and improving human capacities. Think: Elon Musk’s Neuralink chip, Meta AI glasses, gene therapies, life-extension technologies, and other science fiction come to life. As we see and experience the potential for technology to change our lives, it’s hard not to envision ways in which machines and digital technology could be integrated into the human body.

It’s already happening in a variety of areas, and the possibilities are incredible. For example, scientists at Stanford are working on the PRIMA retinal implant system in an attempt to restore vision with what they colloquially call a “bionic eye.” And neurosurgeons in Switzerland are testing a spinal implant that may be able to help paralyzed patients walk again. The next phase could be technology that enhances our existing senses or even extends our lives.

One bellwether of this trend is the launch of the Enhanced Games in 2026, which declares, “We’re reinventing sports with science: At Enhanced, we are pioneering a new era in athletic competition that embraces scientific advancements to push the boundaries of human performance.” Competing athletes are allowed (and encouraged) to use performance enhancements.

But transhumanism raises some thorny issues—how do we ensure equitable access to technologies that can cure diseases or extend life? What are the ethical boundaries around gene editing babies—or adults? What about integrated biotechnologies that could be hacked or controlled? And how would life extension impact our already aging demographics?

We are likely to see vociferous debate, our legal and regulatory systems will need to scramble to keep up with advances, and we’ll have to address the challenge of defining the ethics around human modification. Many are calling this the next stage of human (or post-human) evolution.

Watch for: Human 2.0

6. Renovating Real Estate

The median home price in the United States has risen from $24,400 in June 1970 to $410, 800 in June 2025. Even adjusted for inflation, the 1970 cost hovers around $200,000, less than half of today’s prices. Add to that the higher borrowing costs of the last decade, and homeownership—a fundamental feature of the American Dream—has become out of reach for many. In 1981, the median age at which Americans bought their first home was 29 years old; in 2025, that has increased to age 40. The latest U.S. Census data shows that almost half of Americans age 18-29 still live with their parents, and many who don’t have resigned themselves to a lifetime of renting—three out of ten members of Gen Z have given up on buying a home altogether.

Who, then, is buying all the homes? Investor-owned single-family rentals are increasing as ownership becomes more difficult for families; investors have financing advantages and available capital to purchase real estate. But it may be surprising to know that although about 20% of single-family homes are investor-owned, 85% of those are owned by small investors (who own 1-5 homes); only 2.2% of investor-owned homes are owned by institutional investors.

Meanwhile, in the post-COVID work-from-home era, U.S. office space remains depressed, with vacancies still running at about 20%. Forbes reports that one significant trend is the transformation of empty office buildings into residential housing, which both utilizes vacant office space and contributes to meeting increasing housing demand. There is demand growth in several key real estate sectors: data centers, industrial properties, and multi-family housing.

Watch for: Real estate developers getting creative with empty office space

7. A Food Reboot

The world seems to be re-thinking what it eats. A focus on metabolic health has resulted in increasing interest in things like functional foods (foods rich in vitamins and minerals) and nootropics (substances that are claimed to boost thinking, cognition, and mood). Protein is also making a comeback—many food manufacturers are enriching their products with additional protein. Even Starbucks is getting in on the trend with protein boosts and high-protein beverages.

Some of today’s trendiest functional foods include: antioxidants (blueberries, dark chocolate, kale, black beans, turmeric, moringa), omega-3 fatty acids (salmon, algae oil, flax and chia seeds), electrolyte-enhanced drinks (coconut water, alkalized water), adaptogens for managing stress (ashwagandha, maca, cordyceps, lion’s mane, rhodiola, reishi, and chaga), functional teas (licorice, chamomile, holy basil, matcha, ginseng, ginger, hibiscus), gut-friendly foods (kefir, kimchi, kombucha, sauerkraut, inulin, chicory root), and fiber (chia, flax, and pumpkin seeds).

Technological advances are also changing the way we eat and produce food. Store shelves are filling with cultivated (or lab-grown) meat, which uses up to 95% less land and water than livestock. 3D printed food may be next; it’s already appearing in select restaurants. The food industry is looking at other ways to provide sustainable sources of protein, and insects and algae are on the list—in fact, check your existing protein bars for cricket flour, which is making its way into a number of products (generally listed as acheta protein), thanks to high protein and low environmental impact!

Of course, agriculture is also benefiting from technology, with robotics and AI increasing efficiency and optimization. Biotechnology and CRISPR gene editing are contributing to new types of crops that yield more, require less pesticide, survive harsher weather, and even deliver enhanced nutrients. Precision fermentation is one of the most promising food technologies. This process uses microorganisms to produce specific organic compounds such as proteins, fats, and flavors identical to the original. Gene editing can direct microorganisms to produce a variety of substances; for example, companies are creating proteins that are biologically identical to egg whites and whey protein. Precision fermentation may provide a more resilient food production process, though it faces regulatory challenges before it can go into widespread use.

Watch for: Cricket flour in your favorite pasta

8.  Developing Consumer Debt Crisis

It’s not just the U.S. government that is in debt, though $38 trillion hanging over taxpayers’ head is nothing to joke about. The average American household debt in 2024 was $105,056, a 13% increase since 2020. The total consumer debt as of the third quarter of 2025 reached a record high of $18.59 trillion. Although mortgage delinquencies remain low, other debt defaults are increasing: auto delinquencies are up 12% over the last year, with 5% of car payments 90 days or more past due; nearly 12% of credit card payments are 90 days past due; and over one in ten student loan borrowers are behind on their payments.

One worrisome outcome of increasing debt levels is the growing trend of “buy now, pay later” (BNPL) loans. Apps such as Uplift, Klarna, and Afterpay allow consumers to buy everything from clothes to pizza in small monthly installments. For consumers struggling to keep their heads above water when faced with inflation, student debt, and medical bills—particularly younger generations—BNPL may seem attractive while burying them in even deeper debt. BNPL loans increased from just 2% of online purchases in 2020 to 6% in 2024, and a recent survey found that a quarter of users are looking to BNPLs for groceries, up from only 14% just a year ago.

The combination of high interest rates, inflation and increasing living costs, and households stacking multiple debt obligations leaves families stretched and feeling the pressure of expensive and often unsustainably expensive borrowing costs. Even prime borrowers are beginning to fall behind. Solutions like BNPLs and longer-term loans may ease short-term costs while increasing the overall debt load and making it more difficult to get ahead. Economists express concerns of a possible slowdown in consumer spending, which makes up about two-thirds of the U.S. economy and could lead to recession or debt crisis.

Watch for: Debt products that stretch payments out and reduce ownership and equity   

9. Financial Nihilism

The term “financial nihilism” was first coined in 2021 by Demetri Kofinas, host of the podcast Hidden Forces, in which he suggested that young Americans are simply giving up, believing the system is rigged. Saddled with student debt, priced out of home ownership, and discouraged by stagnant wages and jobs displaced by AI, Millennials and Gen Zers are losing faith in their future opportunities and rejecting conventional financial values and narratives that suggest hard work is all they need to get ahead.

Instead of following traditional financial advice that focuses on discipline and long-term results, many disenfranchised young people are choosing to pursue short-term, high-risk strategies such as prediction markets, crypto investing, meme stocks, and online sports betting. These risky activities have a two-fold appeal: not only is there the carrot of potential outsized gains, but they can also serve as acts of rebellion against a financial establishment that is perceived to be run by self-serving corporations, corrupt politicians, and out-of-touch elites.

The growth of financial nihilism poses dangers as younger generations feel more alienated and adopt more extreme political and social views in an effort to be heard. Possible solutions? Recognize the legitimacy of their concerns, tackle the affordability crisis, address government and corporate corruption, and help young people connect, engage, and feel like they have a stake in the future.

Watch for: Rebellious and possibly destructive (and self-destructive) financial behavior

10. A Return to the Real World

The digital world is increasingly intruding on our daily lives. But physics tells us that for every action, there is an equal and opposite reaction, and that reaction is unfolding at the same time our digital reality evolves and becomes ever more integrated. People are feeling stress, anxiety, information overload, and the pressure of social comparison—ultimately, alienated and disconnected. One solution people are turning to: a return to the real world by focusing on things like human connection, crafting things by hand, working with the earth and animals, and limiting the influence of technology.

Many of us live much of our day-to-day existence in digitally mediated spaces. Whether that’s meeting colleagues on Zoom, communing with friends over Facebook or Instagram, or reading the news on our favorite websites, much of our reality is curated. While we may be more connected than ever in some ways, in other ways we are more atomized and isolated. Nobody shares the same media space, meaning nobody shares the same worldview. We are discovering that there are both advantages and disadvantages to this, but many people are finding that their digital life needs to be balanced with real-world experiences and in-person community.

Returning to the real world may also be a smart career strategy for young people, as many hands-on skilled occupations are not as easily automated, outsourced, or replaced by artificial intelligence. Trades like plumbing, carpentry, welding, electrical work, etc. don’t typically require a costly college degree (and the debt burden that usually comes with it), but often offer pay ranges that are equivalent to or higher than white-collar work. A Resume Builder report found that young people studying construction trades increased 23% between 2018 and 2025, while those training for HVAC and vehicle repair careers rose 7%.

Watch for: People taking tech-free breaks and vacations

The Future Begins Now

Prepare to be surprised—our future probably won’t be what we expect. We could look ahead with fear of the changes, but it’s also possible to look forward with excitement and anticipation at the innovation and creativity we can employ to navigate the challenges we face. Past generations have had their fair shares of metaphorical mountains to climb and have shown remarkable human ingenuity and resilience; we have the same opportunity to expand our horizons. Change may be daunting, but the other side of the coin is bearing witness to and experiencing scientific and technological leaps and bounds unimaginable by our ancestors. We may head into the future burdened by normalcy bias, but if we keep our wits about us, when we reach the far side of the passage of time and change, we’ll be able to look back and marvel, “I never could have imagined that!”

* The CFA Institute owns the certification marks CFA^® and Chartered Financial Analyst^®. CAIA^® is a registered certification mark owned and administered by the Chartered Alternative Investment Analyst Association^® in the United States.