HIGHLAND ASSOCIATES

Research & publications

As we move into the fourth quarter, several developments are reinforcing our cautious outlook. Inflation pressures remain elevated, interest rates are moving higher, geopolitical tensions are disrupting energy markets, and growing debate around the pace of AI investment is raising questions about the sustainability of current equity valuations. In our latest commentary, we discuss the key themes shaping our outlook and how we are positioning portfolios to remain resilient amid growing uncertainty.

Persistent inflation, geopolitical uncertainty, and changing Federal Reserve expectations are testing investors' confidence. While economic growth and corporate earnings remain resilient, higher rates and elevated valuations present meaningful challenges. Read our latest market commentary as we examine the forces driving today's markets and the key risks and opportunities shaping the path forward.

This edition of Highland's Healthcare Update distills what matters most right now, and what healthcare organizations should be thinking about as they manage through the second half of the year.

Persistent inflation, higher rates, and geopolitical uncertainty continue to challenge markets. While equities remain near highs, slowing momentum and fixed income headwinds reinforce the importance of diversification and disciplined portfolio management.

Sustained inflation, elevated valuations and a robust IPO pipeline are front of mind for investors a we close out the first half of the year.

Inflation continues to pressure real returns, raising important questions for portfolio positioning. With bond yields offering limited real income, elevated equity valuations, and broad-based strength in commodities, investors may need to reassess how portfolios are structured.

April has borrowed more than a little of March’s madness. Highland outlines the risks and potential opportunities that may emerge as markets navigate an increasingly complex and uncertain landscape.

After markets were rattled by escalating conflict in the Middle East, surging energy prices, and renewed inflation concerns, we examined where markets stood as the first quarter of 2026 came to a close.

Amid international and domestic volatility, the economy continues to grow at a sturdy pace.

As 2026 opened amid geopolitical friction, elevated uncertainty, and diverging economic signals, we examined where markets stood and what the year ahead may hold.

For equity markets, the story of the Magnificent Seven has dominated not just the past year, but the last seven. Will we see the reign of the Seven come to an end in 2026? Or does this bull market have room to run?

After the excitement and confusion of the 2025 fourth quarter U.S. government shutdown, the longest U.S. government shutdown in history, we reviewed where the markets stood at the end of the year.

Healthcare innovation investing can potentially lead to efficiencies and new revenue streams. The challenge lies in building governance structures that endure through leadership changes and market cycles.

Artificial intelligence (AI) continues to revolutionize industries and redefine the boundaries of digital innovation. It has become a widely adopted tool across multiple industries that has helped companies and employees operate more efficiently.

The third quarter of 2025 marked a pivotal point for U.S. hospitals and health systems. While Moody’s 2024 medians confirmed steady improvement in operating performance, the broader environment grew more complex.

Healthcare organizations are facing challenging questions about not only the market but also about their own risk tolerance and strategic footing. In this whitepaper, we distill recent insights from publications and conferences.

U.S. health policy should not have to fight for airtime, but with everyone’s attention focused on federal layoffs, trade policy, and immigration (the list goes on), probable deep cuts to Medicaid seem to have fallen below the fold.

Just a few short years ago, hospitals and health systems weathered what many have called one of the worst years ever in healthcare - 2022. While providers have seen improvement, the turnaround effort remains incomplete.