Investment markets: Looking ahead to 2026

As 2025 draws to a close, we reflect on the year’s major market shifts and what these changes have meant for investors. We also look ahead to 2026, highlighting the key themes and risks that could shape financial markets in the coming year.

Below is a brief summary of the key takeaways:

• In 2025, markets swung from tariff-driven volatility to strong AI-led equity gains, with political and fiscal developments shaping regional performance.
• For 2026, investor focus on AI is set to intensify, while credit markets may face further scrutiny. US policy presents both opportunities and risks, including a Federal Reserve leadership transition.
• Portfolio performance remains strong, supported by diversification across sectors and regions, with return potential especially where valuations are less stretched.

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