From the Desk

Market insights from our investment teams

Week of  September 28, 2026

Dec Mullarkey

Managing Director, Investment Strategy and Asset Allocation
LinkedIn

U.S. interest rates continue to move higher. As noted in last week’s post, the demand for capital, from governments to fund debt loads and from corporations to finance the AI buildout, has pushed rates to their highest in decades. And there was no letup this week as growth news was surprisingly strong.

GDP for the first half of the year was revised upward. And the related measure of gross domestic income (GDI) was also strong. While GDP adds up what everyone spends, GDI adds up what everyone earns. While theoretically the same, they don’t always match, and most economists like to crosscheck.

Right now, the nominal growth rate readings for both is the highest since 2006, excluding the wild swings during the pandemic. Certainly, a thriving economy has a lot of capital demand and that is what we are seeing right now. Given where we were at the beginning of the year – when geopolitical risk intensified and an energy crisis erupted – it has been a surprise to most economists how well consumers and companies have navigated the challenging terrain.

Sources: Bloomberg, The Financial Times, 2026.

The information may include statements which reflect expectations or forecasts of future events. Such forward-looking statements are speculative in nature and may be subject to risks, uncertainties and assumptions and actual results which could differ significantly from the statements. All opinions and commentary are subject to change without notice. SLC Management is not affiliated with, nor endorsing, any third parties mentioned within this article.

Market insights are based on individual author opinions and market observations. SLC Management investment teams may hold different views and/or make different investment decisions. These are observations only and are not intended to provide specific financial, tax, investment, insurance, legal or accounting advice and should not be relied upon and do not constitute a specific offer to buy and/or sell securities, insurance or investment services. Investors should consult with their professional advisors before acting upon any information posted here. 

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