Trends shaping wealth and financial markets in 2026

Writer: Mirella Franzese

December 2025 – From trillions of dollars in generational wealth transfers to a surge in AI investment, a revival in M&A activity, and a renewed focus on diversification, financial leaders are pointing to several forces expected to shape markets in the years ahead.

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Over the next two decades, an estimated $124 trillion in assets is expected to change hands between generations and spouses, representing what analysts describe as the largest wealth transfer in history.

According to Merrill Lynch, Gen X, Millennials, and Gen Z will inherit a projected $106 trillion, mostly from retiring Baby Boomers; meanwhile women will inherit roughly 70% of the transfers over the next 25 years, per CNBC.

Currently underway, this historic transfer of wealth is expected to significantly disrupt today’s investment landscape, especially as younger generations believe “it’s no longer possible to achieve above-average returns solely on traditional stocks and bonds,” according to Bank of America Private Bank’s 2024 Study of Wealthy Americans.

A growing number of investors are diversifying assets in light of market volatility, shifting regulations, and fears of an AI bubble — all of which remain at play. As a result of ongoing headwinds, risk mitigation through portfolio diversification will increasingly guide investment strategies in the year to come, according to UBS experts. 

At the same time, investors are becoming more selective about which stocks to invest in as the AI boom continues to present new opportunities for massive returns. 

According to Goldman Sachs estimates, capital expenditure on AI is expected to rise again in the coming year, contributing to shifting market dynamics. Much of the strongest equity performance in 2025 has been driven by AI infrastructure companies, including semiconductor firms, hyperscalers, data center operators, power providers, and hardware manufacturers.

That pace of growth has begun to slow, prompting investors to pivot toward companies in later stages of the AI cycle — particularly those generating AI-enabled revenues — as they seek more durable earnings growth in the near term.

Dealmaking, for instance, is poised for recovery in 2026. According to a new Goldman Sachs report, M&A activity surged in the second half of 2025, while the equity market saw a healthy number of U.S. IPOs — which points to a strong year for private equity, financing, and industry consolidation in the quarters ahead.

Here is a roundup of the most significant trends shaping banking and financial markets, according to industry leaders: 

The great transfer of wealth 

Tom Goes, Managing Partner, Northwestern Mutual – Orlando

The generational transfer of wealth (will be) a factor for everyone, everywhere. Different generations consume information and view financial advice differently, so our job is to meet them where they are while providing truly comprehensive planning.

Julie Fox, Southeast Regional Director and Managing Director, UBS Financial Services Inc.

One major opportunity is the impending generational wealth transfer. A significant portion of wealth is expected to transition to the next generation, and we must consider how to engage with them effectively. Additionally, more wealth will be held by women, prompting us to refine our approach to serving female clients. We have a dedicated women’s client segment that focuses on addressing their unique needs. Preparing clients for this transition is critical, as the next generation has different needs and preferences in how they work with advisors.

Todd Stoller, Regional Managing Director & Senior Portfolio Manager, Fiduciary Trust International

We’re seeing exponential growth and tremendous opportunity. Many business owners are coming to us for guidance both before and after liquidity events. What’s particularly notable is the increasing number of women — entrepreneurs, widows, and retirees — seeking advice. It’s a more diverse client base than ever before.

Greg Achten, Managing Director and Market Executive, South Market, UBS

Clients today expect more from us. We’re in the midst of a massive generational wealth transfer, with some estimates saying close to $100 trillion will change hands by 2030. Many business owners are preparing for transitions, whether passing the reins to family or pursuing a sale. At the same time, they’re navigating heightened risks like … market volatility, largely driven by a handful of stocks. 

Diversification strategies

Achten: Diversification across asset classes, sectors, stocks and the economy remains essential. Artificial intelligence has been a major market driver recently, and companies involved in building AI infrastructure have seen tremendous growth. From a diversification standpoint, it’s important not to chase short-term performance. While AI-focused stocks have gained significantly, putting too much into any one area increases risk. Our goal is to help clients maintain balanced allocations across asset classes and sectors, managing risk while still capturing long-term opportunities.

AI investment outlook

Ken Chwatek, SVP, AMG National Trust

From an investment standpoint, AI is a major theme. We expect significant benefits for a variety of industries from AI-related investments starting later this year and ramping up into 2027. Right now, companies are spending heavily on AI infrastructure, but the real profitability will come once those systems start delivering results.

Dealmaking and M&A activity 

Charles Crawford, Chairman and CEO, Hyperion Bank

Another ongoing trend is mergers and acquisitions. There are far more M&As than new bank formations. When I started in banking 40 years ago, there were around 18,000 banks in the United States. Today, that number is down to about 4,000. That’s still a lot compared to other countries, like Canada or the U.K., where only a handful of banks dominate the market.  

Dan Sarver, Managing Director, Confluence Advisors

We believe deal activity will strengthen … into 2026, creating an attractive environment for business owners considering a sale. Several headwinds are easing. Recent tax legislation has created greater certainty, interest rates have moderated, and tariff risks are more clearly defined. With those improvements, we expect M&A activity to gain momentum, particularly as we move into 2026.  

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