Top 10 Policy Actions to Watch in 2026

Watch on YouTube ↗  |  January 27, 2026 at 21:35  |  4:18  |  Morgan Stanley
Speakers
Monica Guerra — Head of Policy, Morgan Stanley Wealth Management

Summary

Monica Guerra, head of US policy for Morgan Stanley Wealth Management, outlines ten 2026 policy developments she expects to drive markets. She highlights midterm elections, geopolitical resource and military competition, OBBBA tax-cut stimulus, Federal Reserve structure and rate policy, affordability pressures, data-center electricity costs, digital-asset regulation, tariff litigation and USMCA talks, and an improving healthcare outlook. The clearest market implications are policy tailwinds for renewables, digital assets and stablecoins, reshoring/nearshoring, and healthcare.

  • Policy remains a major market driver entering 2026.
  • Midterms may influence the Trump agenda and policy timing.
  • Geopolitics is increasingly tied to resources and military strength.
  • OBBBA tax cuts add fiscal stimulus but are not tied to a specific trade.
  • Fed rate policy and potential structural changes are key watch items.
  • Data-center electricity costs may encourage policies favoring renewables.
  • Digital-asset and stablecoin legislation is expected to advance.
  • Tariffs and USMCA talks reinforce reshoring/nearshoring; healthcare outlook improves.
Ideas
Monica Guerra Head of Policy, Morgan Stanley Wealth Management 2:28
Data-center power costs may favor renewables.
Rising consumer electricity costs from data centers could prompt community pushback, encouraging state and local governments to adopt policies favoring renewables and alternative energy sources. This creates a policy tailwind for renewable and alternative energy investments.
SOLAR ICLN MED
Monica Guerra Head of Policy, Morgan Stanley Wealth Management 2:42
Regulatory momentum supports digital assets and stablecoins.
Legislative momentum on digital assets and stablecoins is expected to continue after the 2025 GENIUS Act, and potential passage of the CLARITY Act could establish a comprehensive regulatory framework for digital assets. That improved regulatory clarity is positive for digital assets and stablecoins.
BITO STABLECOINS MED
Monica Guerra Head of Policy, Morgan Stanley Wealth Management 3:14
USMCA and tariffs reinforce reshoring/nearshoring theme.
The Supreme Court's decision on Trump's AIPA tariffs could reshape trade policy, and the administration is expected to reimpose tariffs through other sections of U.S. trade law, adding uncertainty. Additionally, USMCA renegotiations may lead to closer North American economic alignment and tighter trade restrictions on China, reinforcing the firm's long-standing reshoring and nearshoring theme.
Reshoring/nearshoring MED
Monica Guerra Head of Policy, Morgan Stanley Wealth Management 3:28
Healthcare outlook improves as policy uncertainty fades.
The outlook for healthcare has improved because policy-driven uncertainty is fading and macroeconomic tailwinds are rising; the sector also typically outperforms the market in midterm election years.
XLV HIGH
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This Morgan Stanley video, published January 27, 2026, features Monica Guerra discussing SOLAR, ICLN, BITO, STABLECOINS, Reshoring/nearshoring, XLV. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Monica Guerra  · Tickers: SOLAR, ICLN, BITO, STABLECOINS, Reshoring/nearshoring, XLV