FEG Investment
Advisors

The Emperor's New Economic Model: Decoding the Forces Driving Markets in 2026

What happens when one of the world’s leading macro minds takes us inside the forces shaping 2026—and beyond?

In this episode, Greg Dowling sits down with Torsten Slok, Partner and Chief Economist at Apollo Global Management, to break down the forces shaping markets in 2026. They discuss the surprising resilience of the global economy in 2025, the transformative power of AI and the persistence of a K-shaped economy. Torsten also weighs in on private credit’s growth, China’s structural challenges, Europe’s fiscal pivot and the global industrial renaissance reshaping investment opportunities. He also reveals what may be next for inflation and the Fed—and uncovers the hidden risks that could shake up markets this year.

Join us for a forward-looking discussion on macro trends, market risks, and the future of investing with one of the sharpest minds in global economics.

 

  • Key Takeaways

    AI is the biggest macro wildcard for 2026, its success or failure will shape productivity, inflation, and market trends.

    Inflation versus growth versus productivity—If AI underdelivers, stronger growth could reignite inflation and keep interest rates higher for longer. 

    The global industrial renaissance is underway as the U.S. and Europe reshore production in defense, semiconductors and strategic goods, creating lasting investment opportunities.

    China faces structural headwinds from shrinking demographics, housing stress and trade tensions that continue to weigh on growth prospects.


Episode Chapters

0:00 Podcast Introduction
1:23 Welcome Torsten Slok
2:19 The Influence of an Economist Father
3:51 Learning Negotiating Skills Early On
4:41 An Insider's View to the IMF & OECD
8:42 Wrong Textbook, Right Economy 
12:18 AI—Biggest Upside or Downside Risk for 2026?
16:08 No Easy Outcomes for the AI Dilemma
18:36 Does the K-Shaped Economy Widen This Year? 
21:49 From Headwinds to Tailwinds 
24:15 Cut or Hold? The Fed at a Crossroads
26:42 Why China Faces a Tough Road in 2026 
29:08 European Outlook: Slow Start, Strong Commitment 
31:22 Expanding the Private Credit Ecosystem
33:20 The Daily Spark
35:18 Lightning Round

Disclosures

This information was prepared by Fund Evaluation Group, LLC (FEG), a federally registered investment adviser under the Investment Advisers Act of 1940, as amended, providing non-discretionary and discretionary investment advice to its clients on an individual basis. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Fund Evaluation Group, LLC, Form ADV Part 2A & 2B can be obtained by written request directed to: Fund Evaluation Group, LLC, 201 East Fifth Street, Suite 1600, Cincinnati, OH 45202 Attention: Compliance Department.

This information is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this presentation. Neither the information nor any opinion expressed in this report constitutes an offer, or an invitation to make an offer, to buy or sell any securities.

The information herein was obtained from various sources. FEG does not guarantee the accuracy or completeness of such information provided by third parties. The information in this presentation is given as of the date indicated and believed to be reliable. FEG assumes no obligation to update this information, or to advise on further developments relating to it.