Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. Morningstar's 2026 Global Investment Outlook

is offering investors' tactics to whether whatever the future may hold.

The next episode in our series is focusing on income investing in an uncertain market environment.

Higher interest rates have ushered in an era where income opportunities abound,

and that's following years of parched cash flow streams and

low rates, especially in fixed income. However, risk like stubborn inflation and elevated stock

valuations exist. Morningstar researchers believe it's important to identify income opportunities

that could be resilient in today's market.

Joining me is Dominic Papalardo, Chief Multi-Asset Strategist for Morningstar Wealth, which is a segment

of Register Investment Advisor, Morning Star Investment Management.

Happy New Year, Dom.

Happy New Year.

Good to be here.

As we begin 2026, how would you describe the current environment for income investing?

Yeah, income investing has changed a lot in the last three years or so.

Some parts have gotten better for investors.

Some parts have gotten a little worse for investors.

Really what's happened is coming into

2022, interest rates were very low, still near zero in the U.S. in a lot of cases, and really

globally. In 2022, we saw interest rates rise dramatically, mostly driven by the inflation spike

we've seen in the US and again, globally.

...