Six portfolio strategy ideas for 2026

GLOBAL GROWTH IS BROADENING, and business activity is picking up. The Chief Investment Office (CIO) believes 2026 will be shaped by supportive fiscal conditions, rising earnings and an accelerating AI‑industrial investment cycle.

“Recently we’ve experienced above-average volatility across the markets,” says Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank. “This volatility has pressured metals prices and high-growth mega-cap shares as well. In the context of all of this, we’re focusing on six key portfolio considerations we believe matter most this year.”

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Watch the video above for a deeper dive into these ideas and how they might help you find potential investment opportunities throughout the year. In it, Hyzy and Head of Portfolio Strategy Marci McGregor discuss the background behind these conditions and identify potential risks for investors to be aware of.

But no portfolio strategy is one size fits all. “It's so important, especially when there's a ton of headline noise and potentially market volatility, to take a step back and look at the big picture and your long-term goals,” McGregor says.

For more timely market insights from the CIO, tune in regularly to the Market Update audiocast series.

Important disclosures

The opinions expressed are as of 2/2/2026 and are subject to change.

Investing involves risk, including the possible loss of principal.

Past performance is no guarantee of future results.

Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.

Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Stocks of small-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice-versa. Investments in foreign securities involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets.

Alternative investments are intended for qualified investors only. Alternative Investments such as derivatives, hedge funds, private equity funds, and funds of funds can result in higher return potential but also higher loss potential.

This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).