Standard Chartered’s Wealth Solutions Chief Investment Office has released its Global Market Outlook for 2026, providing guidance on investment strategies and market themes for the coming year.
The outlook suggests that risky assets are expected to perform well in 2026 as major asset classes continue to rise. The report emphasizes the importance of diversification across a broader range of asset classes, focusing on three main themes.
The first theme is equities. The CIO anticipates strong earnings growth will drive market gains despite high valuations, with leadership from the US and Asia excluding Japan. The report notes that managing risks through regional diversification or specific sector choices remains important.
The second theme centers on income. The CIO expects emerging market bonds to outperform those from developed markets. Bonds denominated in both US dollars and local currencies from emerging markets are seen as offering better credit quality, higher yields, and diversification benefits beyond just a Federal Reserve-focused perspective.
The third theme involves diversifiers. Gold is projected to continue its gains into 2026, while demand for alternative strategies and currencies such as the Japanese yen (JPY) and Chinese yuan (CNH) remains strong amid ongoing uncertainties.
The outlook also highlights four key risks that could impact investments: disappointment in artificial intelligence developments affecting equity markets; systemic credit events increasing concerns about default risk; data or events limiting the Federal Reserve’s ability to cut interest rates; and an unexpectedly hawkish Bank of Japan leading to higher Japanese yields and a stronger yen, which could affect equities and corporate bonds.
Steve Brice, Global Chief Investment Officer at Standard Chartered, stated: “Managing emotions is key to investing. Scenario planning will help prepare investors for the volatility expected in the coming year and help them remain invested through the cycle. While there are bubbles blowing in the equity market led by the boom in AI, we see differences between this current trend and what happened with the 1990s dot com bubble. We hope the views shared in our latest outlook report will offer investors perspectives on how they can position their portfolios to capture investment opportunities in 2026.”
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