The US macroeconomic landscape is transitioning away from a classical ‘Goldilocks’ regime towards a more nuanced environment where softening broader activity meets persistent short-term central bank friction. Despite growing hawkish risks from the Federal Reserve and elevated yield volatility, US small and mid-cap (SMID) equities continue to display remarkable fundamental strength. Backed by solid Q2 2026 earnings execution, upward revenue/earnings revisions across key sectors, and a transformational wave of AI capital expenditure, SMID-caps are delivering superior earnings growth prospects relative to broad mega-cap indexes.

Brazil’s election is fast becoming a referendum on fiscal credibility. A tightening Lula–Bolsonaro race comes amid investor anxiety over debt sustainability, high rates and the direction of economic policy.

September 2025 marked the tenth anniversary of the Sustainable Development Goals (SDGs). At DPAM, our country sustainability model was established prior to the SDGs, reflecting our longstanding commitment to sovereign sustainability. The introduction of the SDG framework, together with greater availability of data, provided an opportunity to further enhance and align our approach, enabling a comprehensive assessment of countries’ long-term resilience and macro-financial stability.