As 2026 gears up, the economic outlook in Australia, the US and around the globe is far from clear.

There is talk of K-shaped economies, interest rates rising in some economies and falling in others, and the ever-present geopolitical challenges.

In this podcast, Amy Xie Patrick, head of income strategies at Pendal, explains why Liberation Day tariffs didn't play out as predicted, what a K-shaped economy is and how investors should be thinking about it.

“Markets did have a very severe downturn… but why this didn't lead to the fears of a continued bear market… is twofold… a lot of Chinese producers had to eat the cost of tariffs… and the US economy has again surprised us with how resilient it's been all through 2025," says Amy.

“I just wouldn’t be too fearful here at this stage buying into the K shaped economy narrative and waiting for that other shoe to drop, because if you're too defensive… you’re sacrificing all this income, which fixed income is really about.”

Want more insight on how to navigate market uncertainty? Tune in now. 

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Find out more about Pendal's fixed income strategies at pendal/fixedinterest

Pendal is a global asset manager. Find out more at pendalgroup.com

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This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It’s been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients’ individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.

The information in this podcast may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Any projections contained in this podcast is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.

For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com

As 2026 gears up, the economic outlook in Australia, the US and around the globe is far from clear.
There is talk of K-shaped economies, interest rates rising in some economies and falling in others, and the ever-present geopolitical challenges.
In this podcast, Amy Xie Patrick, head of income strategies at Pendal, explains why Liberation Day tariffs didn't play out as predicted, what a K-shaped economy is and how investors should be thinking about it.
&ldquo;Markets did have a very severe downturn&hellip; but why this didn't lead to the fears of a continued bear market&hellip; is twofold&hellip; a lot of Chinese producers had to eat the cost of tariffs&hellip; and the US economy has again surprised us with how resilient it's been all through 2025," says Amy.
&ldquo;I just wouldn&rsquo;t be too fearful here at this stage buying into the K shaped economy narrative and waiting for that other shoe to drop, because if you're too defensive&hellip; you&rsquo;re sacrificing all this income, which fixed income is really about.&rdquo;
Want more insight on how to navigate market uncertainty? Tune in now.&nbsp;
--//-- Find out more about Pendal's fixed income strategies at <a href="https://www.pendalgroup.com/products/asset-class/australian-fixed-interest-funds/">pendal/fixedinterest</a>
Pendal is a global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>
--//--
This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It&rsquo;s been prepared without taking into account any recipient&rsquo;s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients&rsquo; individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.
The information in this podcast&nbsp;may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.
Any projections contained in&nbsp;this podcast&nbsp;is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.
Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.
For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website&nbsp;<a href="https://aus01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.pendalgroup.com%2F&amp;data=05%7C01%7CDavid.Higgins%40pendalgroup.com%7Cfdc46f1ca2c249af188908db566608e3%7C82bfe2773f1645a49ff4f40692b556b9%7C0%7C0%7C638198768471544474%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=bo%2FK353stl%2BbgZg2TrxbQ2AY6%2FIRTSbtirIKerFH8Pc%3D&amp;reserved=0" data-auth="NotApplicable" data-safelink="true" data-linkindex="7">www.pendalgroup.com</a>

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.