News & Insights

Mace McCain, chief investment officer at Frost Investment Advisors, anticipates “a quarter’s worth of headline shock” around the energy crisis. He expects inflation around tariffs to moderate. He also expects that under incoming Federal Reserve Chairman Kevin Warsh, the Fed will cut rates at least twice and reduce the size of its balance sheet. He covers potential tailwinds for equity markets, including around the AI sector.

"We remain overweight U.S. equities, and our outlook is that the current things that are causing strife, both the international tensions and concerns about AI disruption, are going to fade as the year goes on,” McCain said. “We're going to see the underlying growth, earnings and the economy really become the prominent story,” added McCain.

Excerpted from Schwab Network’s Morning Trade Live on March 5, 2026. To watch the full interview, click here.