Quality, Cash Flow to Trump Hype in 2026: DiMartino Booth Warns of Fragile Rally

• Danielle DiMartino Booth advises investors to prioritize quality, dividends, and cash flows over hype by 2026, citing a narrow and fragile global market rally.
• She believes slowing growth and easing interest rates will push investors towards businesses with steady cash flows and reliable dividends, globally.
• Booth warns the US economy is in recession, with potential global spillover, urging caution on emerging markets.
• India's long-term investment story remains intact due to demographics and education, despite recent valuation cooling.
• The AI boom, now driven by leverage, makes markets vulnerable, with little broad-based economic strength outside AI in the US.

Why It Matters: Investors should focus on quality and cash flow as the global rally narrows and AI-driven markets face vulnerability.