Investors will need to be flexible and selective in 2026 as markets adapt to greater economic fragmentation around the world. Bonds are poised to benefit from rate cuts, particularly in the US and Europe, but remain vulnerable to rising budget deficits. Credit is supported by the economic and policy backdrop. In stocks, tech company earnings are expected to grow robustly as AI fuels capital spending. Strong tech sectors should benefit selected emerging markets, with further support from lower US bond yields and a weak dollar.
This article is part of our 2026 Investment Outlook.
Here is a rundown of our asset class views:
*Traffic lights indicate expected return over a three-to-six-month period relative to long-term observed trends. These asset class views draw on investment team views and are not intended as asset allocation advice. The views expressed are valid at the time of writing. Individual investment teams may hold different views and make different investment decisions.
